Cost-Benefit and Sensitivity Analysis of Cut Flower Roses and Comparison with other

Floricultural Crops
SUJATA MAJUMDAR* AND DEBABRATA LAHIRI**

Introduction:
In West Bengal, Howrah and Purba Medinipur
districts flower cultivation have taken a leading role in the
commercialization of agriculture. Other states like Karnataka,
Tamil Nadu, Andhra Pradesh, Maharashtra, Delhi and
Haryana have also emerged as major flower growing centres
in India. Due to flower cultivation, in past few years West
Bengal has been taken a great commercial part in Indian
economy. The present cut flower cultivation in West Bengal
greatly satisfies the local demand which has been used for
worshiping and occasions such as marriage etc. On the
other hand flower produced from greenhouses satisfies
the demand of corporate houses, hotels and restaurant
etc. Most of the flowers have been cultivated in open filed
and among them and according to area, rose has been the
most important one, followed by hibiscus and jasmine. The
paper intends to study the profitability, break-even cost of
production and sensitivity of these flowers. So that proper
planning could be done for growth and sustainability in
this sector. In this view Katapukur, Heledwip-Vulgaria and
Pakuria villages have been chosen purposively from
Howrah and Purba Medinipur districts respectively for this
study.
Review of Literature :
Several researchers and professionals have been
worked on break-even and sensitivity of cut flowers among
them Pawar et. al. (2011) worked on break even analysis
(BEP) sensitivity analysis and assessment of sustainability
in cut flower production for the states of Maharashtra.
Kundu et. al. (1997) tried to show how export-import policy
has been fruitful to export Indian cut flowers. They had
shown a trend of floriculture export and import. Market
pulse knowledge networks (P) Ltd. (2008) submitted a report
of' export market or Mumbai, Surat, Baroda and Ahmedabad
market. By this paper they had shown the demand and
supply condition of the market of above purposive area.
Kokate (2009) had shown about market channels of rose

and gave some suggestions for improvisation of cut flower

industry of Maharashtra. They had shown Indian
floriculture market has growing despite of no government
regulations in the pricing and exports and suggest to
government intervention in pricing policy has been the
key the success of the Indian floriculture industry.
Objectives :
Objectives of the study have been as per following :
(1) To determine the profitability of cut flower roses
cultivated in open field and compare them with
hibiscus, jasmine;
(2) To study the breakeven quantity and sensitivity
analysis of cut flower roses.
Methodology :
Sampling Technique :
From house listing schedule it has been found that
71.00 per cent of the household have been in marginal
farmer category representing 73.00 per cent of family
member. The marginal farmers own 98.39 per cent, 1.68 per
cent and 0.07 per cent of own land, leased-in land and
leased-out land respectively among total operational
holdings. Of the total operational holding 81.41 per cent
land has been put to flower cultivation and of which 31.25
per cent is under rose cultivation. Only 36.16 per cent have
rose cultivation among total number of household and
among them 35.56, 0.40, 0.00 and 0.20 per cent are in marginal,
small, medium and large farmer under rose cultivation
respectively. Two Community Development Blocks namely
Bagnan-II and Daspur from Howrah and Purba Medinipur
districts has been selected respectively. From Bagnan-II
Community Development Block Heledwip-Vulgaria,
Katapukur (under Uluberia sub-division) villages in
Howrah district have been purposively selected for the
study. From Purba Medinipur distict Pakuria (Panskura subdivision) village have been selected.

* Junior Research Fellow, Rural Development Centre, Indian Institute of Technology, Kharagpur.
**Associate Professor and Corresponding Author, Rural Development Centre, Indian Institute of Technology, Kharagpur.

February, 2012

609

TABLE 1DETAILS OF HOUSE LISTING

Sl. District/SubNo. division/Name of
the villages

Total No.
of
Household

Category of farm under rose

cultivation (No.) (N)
Marginal

Small

Medium

Large

Total

1.

Uluberia
(Subdivision of
Howrah)

1.1

Heledwip-Vulgaria

163

54
(94.74)

2
(3.51)

0
(0.00)

1
(1.75)

57
(100.00)

1.2

Katapukur

222

79
(100.00)

0
(0.00)

0
(0.00)

0
(0.00)

79
(100.00)

2.

Daspur
(Subdivision of
Purba Medinipur)

2.1

Pakuria

110

43
(100.00)

0
(0.00)

0
(0.00)

0
(0.00)

43
(100.00)

(Figures in parentheses indicates percentage to total)

From Table 1 it has been clearly seen that 94.74, 100.00

and 100.00 per cent are marginal farmer under among total
farm of rose cultivation of three villages Heledwip-Vulgaria,
Katapukur (Uluberia sub-division) and Pakuria (Panskura)
sub-division respectively. Only Heledwip-Vulgaria village
has small and large farm of 3.51 and 1.75 per cent
respectively of total number of rose cultivated household.

farms; flower cultivation in these two districts has been

due by marginal farms in three villages Heledwip-Vulgaria,
Katapukur and Pakuria of two Community Development
Block Bagnan-II and Daspur from Howrah and Purba
Medinipur districts respectively. Side by side the sample
farms also cultivated hibiscus and jasmine. According to
operational holding the total number of household studied
for rose, hibiscus and jasmine has been 24, 10 and 11
respectively.

A multistage sampling technique has been followed

to select the 13.64 per cent sample farms in comparison of

TABLE 2SAMPLE OF THE HOUSEHOLDS CULTIVATING FLOWER

Sl. District/SubNo. division

Villages
Marginal

No. of farm under rose

cultivation
Small
Medium
Large

Total

1.1

Howrah/Uluberia

HeledwipVulgaria

9
(37.50)

1.2

-Do-

Katapukur

7
(29.17)

2.

Panskura

Pakuria

8
(33.33)

Total

24
(l00.00)

(Figures in parentheses indicates percentage to total)

Table 2 indicates that 37.50, 29. 17 and 33.33 per cent

marginal farm has under rose cultivation of the three villages
Heledwip-Vulgaria, Katapukur and Pakuria respectively
Uluberia (Howrah district) and Panskura sub-division
(Purba Medinipur district) respectively.
610

Analytical Methods :
Socio-economic status of households :
For the socio-economic status of the sample
households the indicators have taken such as age,
Agricultural Situation in India

education, usual activities, type of employment and average

employment man days (per year). The number of farm has
been distributed due to percentages of area of flower
cultivation in ascending order.
Profitability :

another important measurement to check the market

situation. The estimated cost, yield and price has been
derived as per following :
(i) Estimated cost = Actual yield Actual price
(ii) Estimated yield = Actual cost/Actual price

The measure of profitability of cut roses has been a

very important measure in agriculture business to make a
comparison between the floricultural crops with roses. To
arrive at the profitability of cut flowers factors like area,
yield (number of cut flowers), production cost (including
fixed and variable cost), returns (gross income), benefit
(net income) and B/C ratio etc. have been taken. The
production cost has been the sum of input and output
cost.
Break-even analysis :
Break-even analysis has been taken to find the quantity
where a farm gets no loss no profit situation. Here breakeven quantity (BEP) of open field cultivation has been
compared with greenhouse roses. BEP quantity measure
done such as below :
BEP (quantity) = F/ (P- V)---------------------------------( 1)
Where :
F = Per ha. Fixed investment (Rs.),
P = Per flower average price (Rs.) and
V = Average variable cost per flower (Rs.).
In this methodology break-even quantity of
production of rose, hibiscus and jasmine in open field
cultivation have been done to find the no loss no profit or
normal profit condition of the farmer.
Sensitivity analysis :
The sensitivity concept has been employed to
examine the sensitivity of the average cut flower grower
towards risk and uncertainty of increase in production cost,
reduction in yield and reduction in price of flowers, under
existing prices, cost and price structure.
Sensitivity analysis has been done to find the
difference between increase or decrease and actual cost,
yield (number of flowers) and price respectively for the
rose and another floricultural cultivation. This has been

(iii) Estimated price = Actual cost/Actual yield

Results and discussion :
Socio-economic condition of the households :
A comparison of the socio-economic condition of
the sample household engaged in different types of flower
cultivation reveals that maximum number of younger people
group below 18 years engaged in rose cultivation (29.58
per cent). Whereas the highest percentage of people within
age group of 18 to 60 years have been involved in hibiscus
cultivation (69.56 per cent). Lowest percentages of people
(11.59 per cent) in the age group 60 years and above years
have been in hibiscus cultivation. Literacy rate has been
highest among jasmine cultivation as (98.41 per cent) and
illiteracy has been higher in hibiscus cultivators (13.04 per
cent). Level of education depicted by below primary level
and secondary education have 'been higher among jasmine
cultivators (24.19 per cent and 61.29 per cent respectively).
Below higher secondary education has been higher in
hibiscus cultivation (20.00 per cent). The percentage of
graduate and post graduate level education has been higher
for roses (3.88 and 0.77 per cent respectively). Employment
rate has been higher in the hibiscus production 8.33 per
cent. Unemployment rate has been higher in rose
production 1.41 per cent. The percentages of housewives
have been higher in hibiscus production (27.54 per cent).
The percentages of student have been higher in roses
(25.35 per cent). The not students category has been higher
in hibiscus production 7.25 per cent. Old or retired person
has been higher in rose cultivation 14.79 per cent. Most of
the farmer has been involved in primary employment in
jasmine cultivation 100 per cent and secondary employment
has been higher in hibiscus cultivation 33.33 per cent. The
average man day for primary employment per year has been
higher in rose cultivation 149 days and for secondary
employment for roses 300 days. Details of the socioeconomic condition of sample households have been given
in Table 3.

TABLE 3SOCIO-ECONOMIC STATUS OF THE HOUSEHOLD

SI
No.

Particulars

1.
1.1

Age Group
Below 18 yrs

1.2

I 860 yrs

1.3

60 yrs and above

February, 2012

Rose
(n= 24)

Hibiscus
(n=10)

Jasmine
(n= 11)

42
(29.58)
82
(57.75)
17
(11. 97)

15
(21. 74)
48
(69.56)
8
(11.59)

14
(22.22)
39
(61.90)
10
(15.87)
611

TABLE 3SOCIO-ECONOMIC STATUS OF THE HOUSEHOLDContd.

Sl.
No.

Particulars

2.

Education

Rose
(n= 24)

Hibiscus
(n=l0)

Jasmine
(n= 11)

2.1

Illiterate

13
(9.15)

9
(13.04)

1
(1.59)

2.2

Literate

129
(90.85)

60
(86.96)

62
(98.41)

2.2.1

Below Primary

26
(20. 16)

9
(15.00)

15
(24.19)

2.2.2

Below Secondary

73
(56.59)

34
(56.67)

38
(61.29)

2.2.3

Below Higher
Secondary

24
(18.60)

12
(20.00)

9
(14.52)

2.2.4

Below Graduate

5
(3.88)

5
(8.33)

0
(0.00)

2.2.5

Graduate and above

1
(0.77)

0
(0.00)

0
(0.00)

43
(30.28)

24
(34.78)

21
(33.33)

2
(1.41)

0
(0.00)

0
(0.00)

3.

Usual activities

3.1

Employed

3.2

Unemployed

3.3

Housewife

34
(23.94)

19
(27.54)

16
(25.40)

3.4

Student

36
(25.35)

14
(20.29)

15
(23.81)

3.5

Non Student

6
(4.23)

5
(7.25)

2
(3.17)

3.6

Old/Retired

21
(14.79)

7
(10.14)

9
( 14.29)

40
(93.02)

16
(66.67)

21
(100.00)

3
(6.98)

8
(33.33)

0
(0.00)

4.

Type of employment

4.1

Primary employment

4.2

Secondary
employment

5.

Average employment
(man days/year)

5.1

Primary

113

149

98

5.2

Secondary

300

195

(Figures in parentheses indicates percentage to total number of households).

612

Agricultural Situation in India

Profitability of cut Flowers :

Among the flower cultivators area under rose has
been higher than other flowers. Per hectare production of
rose, hibiscus and jasmine has been 4340207 (nos), 1809090
(Kgs) and 54935.06 (Kgs) respectively. Per hectare cost of
production cost has been highest for rose (Rs. 27, 13,290.63
followed by jasmine of (Rs. 2029678.21) and hibiscus
(11,56,498.78). Both gross and net income has been higher
in hibiscus cultivation in comparison to rose and jasmine
to the Rs. 8375087.72 and 7218588.94 respectively. While

gross income per hectare has been for hibiscus

(Rs. 83,75,087.72) followed by rose (Rs. 54,27,835.05) and
jasmine (Rs. 52,38,051.95). Net income from hibiscus has
been highest (Rs.72, 18,588.94) followed by jasmine (Rs.
32,08,73.74) and rose (Rs. 27,14,544.42). Gross and net
income for hibiscus has been higher than all other flowers
because of low cost involved in procuring planting material,
cost fertilizers and plant protection chemicals. Moreover,
hibiscus flower production has been available throughout
the year: Benefit-cost been highest for hibiscus followed
by jasmine and rose. Details have been given in Table 4.

TABLE 4PROFITABILITY OF CUT FLOWERS

(Per hectare)
Sl. Particulars
No.

Rose
(no.)

Hibiscus
(no.)

Jasmine
(Kgs.)

1. Area (ha.)

1.94

0.88

0.77

4340207

1809090

54935.06

3. Production Cost (Rs.)

27,13,290.63

11,56,498.78

20,29,678.21

4. Returns (Gross income) (Rs.)

54,27,835.05

83,75,087.72

52,38,051.95

5. Net income (Rs.)

27,14,544.42

72,18,588.94

32,08,373.74

1.00

6.24

1.58

2. Yield

6. B/C ratio
Break even analysis :

It has been found the break even quantity of roses

244644 numbers in terms of fixed investment of Rs. 139446.94
for per 100 flowers at a price of Rs. 116.87 and per unit
variable cost Rs. 2489608.13. The break even quantity for
hibiscus has been 3140 numbers in terms of fixed investment
Rs. 59062.11 for 100 flowers at a price of Rs. 19.73 and per
unit of variable cost Rs. 767018.46. Lastly, the break even

quantity of jasmine has been 895.83 kgs. for

Rs. 62985.57 of fixed investment and a price of Rs. 96.66 per
kg. of flowers and per unit of variable cost Rs. 1447384.86.
By producing this quantity of flowers the farmer should
face no profit no loss situation. It has been clear from that
break even quantity of roses has been lower than hibiscus
and price of roses has been higher than hibiscus. Details
have been given in Table 5.

TABLE 5BREAK-EVEN ANALYSIS OF CUT FLOWERS

Sl.
No.

Type of cut
flowers

Annual flower
production
(no./kg of
flowers)

Total fixed
investment
(Rs.)

Price
received
per unit
(Rs.)

Price per
unit of
flower
variable
cost (Rs.)

Break-even
quantity
(no./kg of
flowers)

1.

Rose

4340207 (nos.)

139446.94

116.87/
100
flowers

2489608.13

244644
(nos.)

2.

Hibiscus

1809090
( nos.)

59062.11

19.73/
100
flowers

767018.46

3140 (nos.)

3.

Jasmine

54935.06 Kg.

62985.57

96.66/
Kg.

1447384.86

895.83 Kg.

February, 2012

613

Sensitivity Analysis :
In this section analysis has been done to know how
much cut flower growers have been satisfied in the above
range of cost, yield and prices. Highest difference between
actual and increase cost has been found for the jasmine
Rs. 2507979.79. Yield differences have been higher in
hibiscus 17079799. The difference between actual and
increase of price among roses and hibiscus higher in roses

(Rs. 84.13/100 flowers and 5.27/100 flowers respectively)

and for jasmine the same difference has been as Rs. 23.34
per kg. Thus sensitivity analysis has been clearly shown.
In all type of flowers it has clearly observed that the farmer
get positive results for increasing cost, yield and price as
because they got the positive amount of production than
break even quantity of production. Details have been given
in Table 6.

TABLE 6SENSITIVITY ANALYSIS OF INCREASED COST AND REDUCED YIELD AND PRICES OF CUT FLOWERS
Sl.
No

Particulars

1.

Cost (Rs.)

2.

3.

Yield (No.
or unit)

Price
(Rs.)

Rose

Hibiscus

Jasmine

Actual

1562643.78

1156498.78

2029678.21

Increased

3255465.50

2060898.50

4537658.00

Difference

1692821.72

904399.72

2507979.79

Actual
Increased/
decreased
Difference

4340207
18624000

1809090
18888889

54935.06 Kg.
8287500.00Kg.

14283793

17079799

8232564.94Kg.

Actual

116.87/100
flowers

19.73/100
flowers

96.66/Kg.

Increased/

200.00/1 00

25.00/ 100

120.00/Kg.

decreased

flowers

flowers

Difference

84.13/100
flowers

5.27/100
flowers

Conclusions :
In spite of the fact that rose has been the major
floriculture crop in these two districts its cultivation has
heen preferred mostly be members of the household below
18 years of age. But most of the farmers have taken rose
cultivation as a secondary occupation. Area of roses has
been higher than other floricultural crops and its production
and net income have higher than others. But the benefitcost ratio of hibiscus has heen higher than rose and jasmine,
thus its profitability has been higher than rose and jasmine.
Break-even quantity and sensitivity analyses of cost, yield
(production) and price have been positive for all crops.
REFERENCES
1. Kokate, Pravin (2009): Marketing channels of rose
and improvisation of present status of cut flowers
Project report on marketing channels of rose,
carnation and gerbera.
2. Kundu K. K., Singh Jai, Singh V. K. and Suhag
K. S. (1997): Indians Floriculture Exports
Growth, Status, Constraints and Export Strategies:

614

23.34/Kg.

An Analysis Indian Journal of Agricultural

Marketing, Vol. l1 (1& 2): PP 1421.
3. Market pulse knowledge networks (P) Ltd. (2008):
Towards floriculture: Understanding sector and
Market (final project report submitted to Sajjata
Sangh).
4. Pandey R. K., Bharadwaj S. P., Nirman K. P. S.
and Mahajan V. K. (1996 ): Economic analysis of
price behavior and marketing of egg Indian
Journal of Agricultural Marketing, Vol. 10 (2)
PP 6669.
5. Pawar B. N. and Phalke Shweta (2011);
Sustanability in cut flower production in Satara
district of Maharashtra Indian Journal of
Agricultural Marketing, Vol. 25 (1): PP 1020.
6. Verma A. R., Rajput A. M. and Patidar R. S. (2004):
Price spread, marketing efficiency and constraints
in marketing of onion in Indore district of Madhya
Pradesh Indian Journal of Agricultural
Marketing, Vol. 18 (2) PP 6676.

Agricultural Situation in India

C. Agro-Economic Research

Impact of Emerging Marketing Channels in Agriculture Marketing-Benefit to Producer-Sellers

and Marketing Costs and Margins of Major Agricultural Commodities in Bihar and Jharkhand
Background
In the 21st Century, when international trade barriers
are being overcome through free trade agreements, Indian
farmers from one notified area are not allowed to sell their
agricultural produce in another notified area of the same
state. It is due to the fact that there is a strong license raj in
agricultural marketing. It we dig deeper into the issue of
agricultural marketing, it would emerge that the government,
by virtue of provisions in the Agriculture Produce market
Regulation (APMR) Act, is responsible for hoarding by
traders and the consequent spiraling prices. The APMR
Act, more commonly known as Agricultural Produce
Marketing Committee (APMC) Act, of the respective state
governments, was formulated in the mid 1960s. It authorizes
state governments to set up and regulate wholesale
agricultural markets with the stated objective of ensuring
the farmers get a fair price for their farm produce, and of
protecting them from exploitation by the traders.
Most APMCs limit the number of licenses issued to
traders to deal in purchase/sale of agricultural produce in
their respective markets. The farmers are only allowed to
sell their. produce within the APMC market premises. Most
markets lack the proper infrastructure to store perishables
and as a result, farmers are forced to sell their perishables
at the price quoted by traders (incentivizing traders). When
a large number of farmers sell their produce in a mandi to a
limited number of traders, the dice is loaded against the
farmers and consumers. It is evident from various studies
that there is considerable gap in facilities available in the
market yards and creation of marketing monopolies, which
are detrimental to the growth of agriculture and farmers.
In view of this, the government has recognized the
importance of liberalizing agriculture marketing in early years
of this century resulted to constitution of an expert
committee under the chairmanship of Shri S Guru.
Subsequently on the basis of committee's report and thereof
recommendations of Inter-Ministerial Task Force, Ministry
of Agriculture, Government of India formulated a model
APMC Act, in 2003 and advised states to implement the
Act. The amended act aims at complete transformation of
agricultural marketing in India to make it more market and
growth oriented. But states have resisted APMC reforms,
as they fear a loss of mandi revenue.
In fact the amended APMC Acts will allow varying
degrees of flexibility and increasing role of private players

in improving the efficiency of the agricultural marketing

value chain. Many states have amended their APMC Act
and some states are yet to notify the relevant rules. The
states where it amended, the agricultural marketing
situations have tremendously changed and thus, the
Marketing Division of the Department of Agriculture &
Co-operation, Ministry of Agriculture, Government of India
assigned its Agro-Economic Research Centres/units to
undertake a study entitled IMPACT OF EMERGING
MARKETING CHANNELS IN AGRICULTURE
MARKETINGBENEFIT TO PRODUCER-SELLERS
AND MARKETING COSTSAND MARGINS OF MAJOR
AGRICULTURAL COMMODITIES IN THEIR
RESPECTIVE STATES. Accordingly, Agro-Economic
Research Centre for Bihar & Jharkhand, T M Bhagalpur
University has conducted the study in Bihar and Jharkhand
States.
Objectives of the Study
The broad objective of the study is to assess the
impact of emerging marketing channels in agricultural
marketing and benefit to producer-sellers and marketing
costs and margins of major agricultural commodities in the
states.
Research Questions
(i) What has been the farmers share in the consumer
rupee in emerging models vis-a.-vis the traditional
marketing channels?
(ii) What is the degree of market efficiency and
incidence of post harvest losses in emerging
marketing channels vis-a-vis traditional. marketing
channels?
(iii) What the market practices and services provided
by different agencies in tlte emerging marketing
channels vis-a-vis traditional marketing channels?
(iv) What are the constraints faced by the farmers
and different market functionaries in the emerging
marketing Channel vis-a-vis traditional marketing
channels?
Methodology
The study has been undertaken in Bihar and
Jharkhand states. The reference crops for the study are
mango among the fruits and cauliflower among the

*AERC, T. M. Bhagalpur University, Bhagalpur, Bihar and Jharkhand.

February, 2012

615

vegetables in Bihar and Jharkhand respectively. In Bihar

among the fruits (290.71 thousand ha) nearly one third of
mangoes is produced in five prominent districts. Out of
these 5 districts, Bhagalpur is one, which has specialty in
production of Jardalu variety of mangoes, known for decent
flavor, juicy content and export potential, has been selected
for the study. Keeping in view of crop prominence in the
district Nathnagar and Sultanganj blocks have been
selected for farm level enquiries. In Jharkhand, among the
vegetables (57 lakh ha), cauliflower (27.30 thousand ha) is
grown in 10.00 per cent of total vegetables area. Cauliflower
is largely produced in Ranchi district, which account for
more than 10.00 per cent of total cauliflower's area in the
state. So for the purpose of study, Ranchi district has been
selected and in the district for farm level enquiries
Pithoria and its adjoining villages falling under Kanke
block has been selected, as the Reliance Freshs

collection centre of vegetables is also operating

extensively in these villages.
The sample has been drawn from both the marketing
channels viz., traditional (TMC) and emerging (EMC). Fifty
farm households each from TMC and EMC in each state
have been selected covering proportionately from small,
medium and large farm categories. This way the size of the
sample in each state is 100 households. Besides farm
households, other market players and consumers have also
from included in the sample. It constitutes buyers/ traders
(05), retailers (15) and consumers (15) on TMC category in
each State and buyers (05) and consumers (15) on EMC
category in each state, taking together 30 and 20 on TMC
and EMC group in each States.
The agricultural marketing reforms status in the light
of model APMC Act (2003) in Bihar and Jharkhand may be
looked as below :

AGRICULTURAL MARKET REFORMS

State(s)

Reform Status

Remarks

Bihar

BAPMC Act repealed w.e.f., 01-09-2006

Open/unregulated Agricultural Market

Jharkhand

Reforms to JAPMC Act have been done for

Direct Marketing, Contract Farming and
markets in Co-operative/Private Sectors w.e.f.,
06-12-2008

Dialogues with the corporate bodies or

individuals are taking place for contract
farming etc.

BIHAR
It was in the 1958 that the Government of Bihar took
an important step in regard to market regulation of
agricultural produce and a bill known as "Bihar Agricultural
Produce Markets Act, was passed in 1960. With the
enforcement of Act and until November 2000, the state had
122 agricultural produce market committees. Out of these,
95 fell in residual Bihar, after carving out Jharkhand State in
November, 2000; and remaining 27 in Jharkhand State.
Subsequently in 2006, Government of India suggested
through its model Act (2003), to amend BAMPC Act (1960)
so as to allow private players etc. in marketing of agricultural
commodities. But the state government repealed the same
w.e.f., 01-09-2006.
After the repeal of Bihar Agricultural Produce
marketing Committee Act (BAPMC act), agricultural market
in the state is functioning without any formal institutional
structure. However, the state government has made an
ambitious market development scheme assisted Asian
Development Bank under market infrastructure
development project and NHM, with five modern terminal
markets at the top, 54 marketing yards belonging to Bihar
State Agricultural Marketing Board (BSAMB) being
converted to Agri-business Centres in the middle tier, and
1500 rural haats with developed facilities at the grass not
616

level. These haats/ agri-business centres are proposed to

be fed by 10,000 on farm primary processing centres
(OFPPC) at farm gates.
Traditionally in marketing of mangoes, the role of
pre-harvest contractors is important, who are mostly local
or of adjoining areas/ districts pay visit to the mango
orchards at the flowering stage of fruit with a view to assess/
estimate the volume of production and accordingly they
undergo agreements with the growers/ orchard owners for
1 to 3 years or 1 to 2 years usually. The agreement is made
on per mango tree basis ranging between @ Rs. 1000/ tree
to Rs. 3000/ tree. Since these pre-harvest contractors are
mostly local keep close touch with the orchard owners and
provide credit facility all around the years in lieu of making
the contract of the orchards at the time of flowering. In fact
they are less market intermediaries more mahajans in many
cases.
Exploitation of other intermediaries and sometimes
by pre-harvest contractors when became, the order of the
day, growers opted a chain i.e., 'traders,' who are mostly
local or of adjoining areas rather from their own society for
marketing the produce in distant urban market directly.
These traders act as the representative of the producersellers. Traders after collecting the mangoes arrange the
sorting, packaging and transporting to big city markets
Agricultural Situation in India

like Kolkata (West Bengal), Ranchi, Bokaro and Dhanbad

(Jharkhand) and sometimes in Uttar Pradesh, where they
sell the produce in urban mandies. After selling the produce,
traders return to village(s) and pay the amount to the
respective growers as per their sold volumes of the produce
and the price realized in those markets on account of selling
the produce. In fact, this new chain has emerged mainly
after the development of road and connectivity and
improvement in law and order in the state in post BAPMC
Act repealed era. But this has not been emerging very
prominently because of lack of proper trading rules and
other marketing infrastructure.
JHARKHAND
The state agricultural produce market act is in
existence in Jharkhand. After bifurcation from Bihar in
November 2000 Jharkhand adopted APMC Act in toto as it
was the then APMC Act in Bihar. Subsequently JAPMC
Act amended in accordance with the APMC Model Act
(2003) in 2007 and came into effective from 06/12/2008.
Provisions for direct marketing, contract farming' and
markets in co-operative/private sector have been made.
But it is yet to be effected. However, dialogues are going
on with corporate bodies for contract farming etc.
Traditionally, the most prominent marketing agencies
for marketing of vegetables in general are kutcha arhatiya
or small commission agent or the agent of wholesaler who

buy vegetables from the farmers in the rural haat/periodical

markets. During in course of survey, it has been found that
vegetables are not being bought or sold in the market yards
in Ranchi district (the study area). The co-operative
institution as an marketing agency does not play important
role in marketing of vegetables even if it still exists (VEGFED)
in Jharkhand. It became non-functional in vegetables
co-operative marketing; however, it is doing some other
works.
In fact, APMC Act prohibits transaction outside the
regulated mandies. This Act does not allow direct
marketing and direct procurement of agricultural produce
from farmer's field. Moreover APMC Act restricts the
setting-up of markets other than by the state governments.
This act is coming in the way of a new private initiative in
the modern retailing and upgrading of the supply chain
especially in the field of fruits and vegetables. In view of
this, government of Jharkhand amended APMC Act and
allowed corporate like Reliance Fresh in retailing of
vegetables. Now Reliance Fresh (RF) in Ranchi district has
emerged as a new channel for retailing vegetables. At
present RF have three retail outlets and two collection
centres in Ranchi. A few thousand farmers have been
hooked on to the Reliance Retail Supply chain in the district
through its collection centres, which are linked with
consortiums where grading and standardization takes place.
Its supply chain is as below :

Producers/Local FarmersCollection CentresRF OutletsConsumers

Comparison of the Benefits in TMC and EMC
BIHAR
Mango is grown for over hundreds of years and
more than dozen of varieties in the district. The popular
varieties are Dudhia Maldah, Zardalu, Bombay Gulabkhas,
Bharatbhog, Fazli, Malikka, Amrapali, Biju etc. The
cultivation of mangoes in the district is traditional and
practice adopted for its maintenance is annual. The average
age of mango orchard is reported to be 23 years 6 months
in case of households enquired for the purpose of TMC
and 30 years 4 months for EMC. On overall the average
area under the crop is 0.80 ha on TMC households and
0.82 ha on EMC households. The total production cost
has been estimated at Rs. 9503/ha in case of TMC
households and Rs. 9037/ha in case of EMC households.
Per hectare fixed cost is estimated at Rs. 13164 in case of
TMC households and Rs 13308 in case of EMC households.
Total marketing cost stands at Rs. 812/ha and Rs. 3415/ha
on TMC and EMC farms respectively. The economics of
mango production in terms of costs and net returns, the
results indicate the overall cost of cultivation and gross
return are Rs. 23479.05/ha and Rs. 59984/ha, resulting in
net returns of Rs. 37316.95/ha on TMC farms whereas those
are Rs. 25761.45/ha and Rs. 76682.50/ha, resulting in net
February, 2012

returns of Rs. 54336.55/ha in case of EMC farms. The results

further indicate that the cost-benefit ratios are 1:2.56 and
1:2.98 on TMC and EMC farms. It indicates that returns are
higher on EMC farms over TMC farms.
As regards the association of farmers with emerging
marketing channel is concerned it is very interesting to
note here that out of 58 small farmers, 21 medium farms,
and 21 large farms, 21 (36.21 %), 12 (57.15%) and 17 (80.96%)
respectively associated with EMC farms. It clearly indicates
that large sized farms have greater association with the
EMC. It is mainly because that they do not want to move
outside the farm gate for marketing the produce as well as
prefer to dispose larger volume of the produce to one buyer
rather more than one buyers. Selling to one chain of
intermediaries is beneficial in the sense that the
responsibilities of all the marketing activities like sorting,
grading, weightment, transportation etc. lie with him. So
far as the facilities to the farm households from the buyers
is concerned, it is not provided for cultivation of the
mangoes as such, however, sometimes advances are given
to the households mainly for purchase of the produce.
In case of EMC, trader is the new intermediary who
has taken the place of pre-harvest contractor of TMC so
they may be called as post-harvest contractor. In marketing
617

of mangoes, the spread has not been reduced in EMC. We

may simply say replacement of a intermediary by a new
one, who sells the produce on behalf of the producer-sellers
in urban mandies. In lieu of it he gets some margin like the
margins of other intermediaries.
JHARKHAND
Cauliflower is the most popular vegetable among the
Cole crops. It is a delicate crop and needs more care to
grow successfully than most other vegetables. The
cauliflower varieties are very responsible to temperature
photoperiod. It is to be very important to choose right
variety to be sown at the right time. Broadly, cauliflower
varieties can be grouped as early, mid-season and late.
Cauliflower producers best curds in a cool and moist climate.
The climate of Ranchi district (study area) is very congenial
for vegetables' production. The district produces
vegetables in all round the year. So cauliflower is grown in
the district in all the seasons. On overall the average area
under the crop is 3.34 ha on TMC farms and 3.30 on EMC
farms. The overall cost of production at TMC farms is
estimated at Rs. 37050/ha whereas that of at EMC farms Rs.
36910/ha. Out of the total production costs, the proportion
of the cost incurred on human labour (50.80%) is higher
followed by mannuring (11.40%), seeds (9.78%), fertilizer
(7.60%), irrigation (5.26%), field preparation (5.00%) and
plant protection materials (4.82%) at TMC farms whereas
that of 47.00 per cent on human labour, 12.21 per cent on
mannuring, 9.62 per cent on seedlings, 7.97 per cent on
fertilizers, 7.11 per cent on other paid out costs on EMC
households. The gross return out of the sale of marketed
surplus has been calculated at Rs. 79887.50/ha at TMC
farms and Rs. 85280/ha at EMC farms. The results indicate
that the Cost-Benefit Ratio (CBR) is 1:1.57 at TMC and
1:1.90 at EMC farms. It revealed that per ha return on EMC
farms is higher over TMC farms.
As regards the association of farmers with emerging
marketing channel is concerned it is to note here that out
of 45 small farmers, 36 medium farmers and 19 large farmers
18 (45.00%), 2 (61.12%) and 10 (52.64%) respectively are
associated with EMC farms, which indicates that large sized
farms have greater association with EMC farms. Moreover,
in marketing of cauliflower on EMC, the number of
intermediaries has been certainly reduced as the EMC in
Jharkhand is Reliance Fresh Retails. Reliance Fresh Retail
Supply chain for cauliflower or vegetables in general in the
district is through its collection centre and retail outlets,
the produce reaches to the consumers. So, the spread has
been reduced but it has not increased the farmers share in
consumer's rupee. The margin of intermediaries goes to RF
retails in stead of facilitating the farmers in procuring the
produce from the fields.
Farmers Marketing Costs
In Bihar, per hectare farmers marketing costs for
marketing mangoes has been estimated at Rs. 812 and
618

Rs. 3415.50 on TMC and EMC farms respectively. The costs

of marketing of per quintal of mangoes are Rs. 19.93 and
Rs. 82.40 on TMC and EMC farms respectively. It revealed
that the cost of marketing is higher on EMC farms. It is
mainly due to selling the produce in distant urban big
markets, which incur high cost of transportation of the
produce.
In Jharkhand, per hectare farmer's cost of marketing
of cauliflower is estimated at Rs. 5416 on TMC farms. The
cost of marketing of per quintal of cauliflower is Rs. 8.56 on
TMC farms. It could not be estimated on EMC farms
because the produce is procured from the farmer's field by
the collection agents of RF.
Prices at Retail end or Consumers Price
In Bihar the analysis of the marketing pattern
indicates the complex nature of marketing of mangoes
particularly on account of its perishability. Farmers sell
their mangoes as soon as it grows in proper size and the
timing of the varieties of mangoes for harvesting. After
harvesting and until reaching to the consumers these are
being sold by different types of intermediaries. Sometimes
the margins of these intermediaries are higher than the
share of producers in consumers price. But the ultimate
burden of margins goes to consumers. In case of the present
study, the results indicate that the average consumers
price for mangoes is Rs. 2250/qtl on TMC farms and Rs.
2845/qtl on EMC farms, which are 52.86 per cent and 53.79
per cent higher respectively than respective the selling
price of the producer-sellers.
In case of cauliflower in Jharkhand on an average
the retail end prices are Rs. 810/ qtl and Rs. 830/qtl on TMC
and EMC farms respectively. These prices are nearly 110.39
per cent.and 102.44 per cent on TMC and EMC farms
respectively higher than the respective selling prices of
producer-sellers. It clearly indicates that taking together
the margins of various intermediaries more than 100.00 per
cent than the selling prices of the producer-sellers. In other
words the retail end prices are more than double the selling
prices.
Price Spread and Modified Measure of marketing
Efficiency
One of the most widely accepted component for the
study of agricultural marketing system is the measurement
of 'price-spread.' The general hypothesis is that larger the
price-spread, greater the inefficiency in the marketing
system and vice-versa. In Bihar, the price spread for
mangoes, taking together all the sample farms the producer's
share in consumer's rupee in case of TMC farms is Rs.
1472/qtl (65.42%) out of the consumer's rupee (Rs. 2250/
qt1.). The margins of pre-harvest contractors, wholesalers
and retailers are Rs. 278/qt1 (12.36%), Rs. 140/qtl (6.22%)
and Rs. 307.50/qtl (13.67%). The cost of marketing the
produce is Rs. 52.50/qtl (2.33%). In case of EMC farms, the
Agricultural Situation in India

producers share in consumer's rupee is Rs. 1850/qtl.

(65.03%). The margins of traders, wholesalers and retailers
are Rs. 376/ qtl (13.22%), Rs. 212.15/qtl (7.45%) and Rs.
321.50/qt1 (11.30%). The cost of marketing is Rs. 85.35%/
qt1. (3.00%). It indicates that the selling price of produce in
case of mangoes is almost one and half times more than
what the producer gets. There is almost no difference in
the prices, which the producers receive on either channel.
It is due to the fact that in Bihar there is no significant
change in marketing of mangoes rather it is almost traditional
but unregulated. As regards the MME is concerned it is
1.892 and 1.858 on TMC and EMC farms respectively, which
corroborates the fact that there is almost traditional pattern
of marketing of mangoes in Bihar.
In Jharkhand, the price spread for cauliflower, taking
together all the sample vegetable producers, the producer's
share in consumer's rupee in case of TMC farmers is Rs.
385/qt1 (47.53%) out of the consumer's. rupee (Rs. 810/qtl).
The margins between the producer-sellers and the
consumers are Rs. 359/qt1 which are distributed to Rs. 135/
qtl (16.66%) for the kutcha arhatiya/itinerant trader, Rs.
105/qtl (12.96%) for the wholesalers and Rs. 119/qtl (14.70%)
for the retailers. The cost of marketing is Rs. 66/qtl. (8.15%).
In case of EMC farms, the producer's share in consumer's
rupee is Rs. 410/qtl. (49.40%). The margins between the
producer-sellers and consumers including the cost of
marketing is Rs. 420/ qtl, which is 102.44 per cent higher the
prices received by the producer sellers. It indicates that
the selling price of the cauliflower in Jharkhand is more
than double the price received by the producer-sellers on
both the channels. As regards the MME is concerned, it is
0.91 and 0.98 on TMC and EMC farms respectively. The
results of MME find that there is little difference in the
marketing efficiency. However, it is a bit higher on EMC
farms. But it is surprisingly very little, which corroborate
the fact that RF is not doing justice either with the
producers or consumers rather operating for the benefits
of the corporate sectors.
Policy Implications
Improving and increasing the efficiency of fruits and
vegetables marketing system is going to be an important
agenda for 21 century. Fruits and vegetables both have
vast potential for its production. To tape its potentiality
maximal concerted efforts for production and marketing
system are required. In the light of the findings and
observations of the study some points for actions are
suggested in following manner for policy implications :
Bihar (For Mangoes)
(i) The proposed marketing development programme
should implemented at the earliest. (Attn: Dept of
Agriculture, Government of lndia).
(ii) There is need to create suitable number of fruits
marketing zones in the state where fruits produced
February, 2012

in and around the districts could be marketed

(Attn: Dept. of Agriculture and Dept. of Industries, Government of Bihar).
(iii) To minimize the wastages at the different levels in
marketing of the produce regular training
programmes for post-harvest management for all
the stakeholders should be organized. (Attn:
Dept. of Agriculture, Government of Bihar and
Agricultural Universities in Bihar).
(iv) To develop the resource base of fruit growers,
linkages between the marketing and credit should
be made so that producers dependence on traders
for credit, which puts them in a highly unequal
trading relationship with the produce, could be
steadily eliminated. (Attn: Dept. of Agriculture,
Dept. of Industries, Government of Bihar and
State level Bankers Committee, Bihar).
(v) A multi-pronged implementation strategy for
developing well integrated system of production
and marketing should be formulated. (Attn: Dept.
of Agriculture, Government of Bihar).
Jharkhand (For Vegetables)
(i) Modernization of marketing linkage between the
farmers and consumers is absolutely vital for
which APMC Act need to be amended wherein
vegetables and horticulture should be exempted
from the APMC Act. This will enable the farmers
to establish direct connection with the markets.
(Attn: Jharkhand State Agricultural Marketing
Board and Dept. of Agriculture, Government of
Jharkhand).
(ii) Vegetables marketing system in Jharkhand is
outmoded, inadequate and devoid of
infrastructural facilities. So it is necessary for all
the three set of marketing institutions viz., public,
co-operatives and private trade be continuously
evaluated and on the basis of the identification of
areas for improvement the appropriate policies
and programmes be devised. (Attn: Dept. of
Agriculture and Dept. of Co-operative,
Government of Jharkhand).
(iii) In Jharkhand, the district of Ranchi and its
adjoining districts have advantages for cultivation
of vegetables. In view of this it can be suggested
of a multi-pronged strategy for developing well
integrated system of production and marketing.
(Attn: Dept. of Agriculture, Government of
Bihar).
(iv) The study suggests that the development of rural
markets should be given due priority from the
point of view of creation of market infrastructure
such as grading, transportation, storage etc. If
619

these facilities are provided at the centralized

wholesale markets, the scale of operations will be
high and the locations highly centralized with
moot chance of benefits percolating to the farmers
especially small farmers participating in small
markets. The support to these farmers should
receive priority in the future market reform policy.
(Attn: Dept. of Agriculture and Jharkhand State
Agricultural Marketing Board, Government of
Jharkhand).
(v) Being arriving at the conclusion that small and
marginal farmers need credit thus, it is suggested
to develop linkages between marketing and credit.

620

(Attn: Dept. of Agriculture and State Level

Bankers Committee, Government of Jharkhand).
(vi) Vegetables processing units should be
established and allow them special package for
operating in the sector. (Attn: Dept. of Industries,
Government of Jharkhand) .
(vii) To minimize the wastages at the different levels in
marketing the vegetables, regular training
programme for post-harvest management should
be organized. (Attn: Dept. of Agriculture,
Government of Jharkhand and Birsa
Agricultural University, Ranchi).

Agricultural Situation in India

D. Commodity Reviews
(i) Foodgrains
rose by 0.66 per cent and 1.02 per cent but pulses fell by
0.56 per cent over the previous month.

During the month of January 2012, the Wholesale

Prices of Foodgrains displayed a rising trend. Wholesale
Price Index (Base 2004-05=100) of Foodgrains, and Cereals

ALL INDIA INDEX NUMBER OF WHOLESALE PRICES

(Base : 2004-2005=100)
Commodity

Weight
(%)

WPI for the

Month of
January
2012

WPI for the

Month of
December
2011

WPI
A year ago

Percentage change
during
A month

A year

(1 )
Rice

(2)
1.793

(3)
172.9

(4)
173.8

(5)
170.6

(6)
0.52

(7)
1.35

Wheat
Jowar
Baira
Maize
Barley
Ragi
Cereals
Pulses
Foodgrains

1.116
0.096
0.115
0.217
0.017
0.019
3.373
0.717
4.09

169.1
259.4
200.1
210.1
182.7
207.1
177.7
211.5
183.6

166.7
247.1
187.7
200.4
174.0
208.4
175.9
212.7
182.4

175.2
200.9
177.2
174.7
179.3
172.9
173.5
189.9
176.4

1.44
4.98
6.61
4.84
5.00
-0.62
1.02
-0.56
0.66

3.48
29.12
12.92
20.26
1.90
19.78
2.42
11.37
4.08

Source : Office of the Economic Adviser, M/O Commerce and Industry.

Behaviour of Wholesale Prices

The following Table indicates the State wise trend
Commodity

of Wholesale Prices of Cereals during the month of

January, 2012.

Rising

Falling

Mixed

Steady

Rice

Main
Trend
Mixed

Gujarat
Jharkhand

Delhi
Uttar Pradesh

Kerala
Haryana
Karnataka

Wheat

Mixed

Uttar Pradesh
Maharashtra

Karnataka
Madhya
Pradesh

Assam
Tamil Nadu
West Bengal
Punjab

Jowar

Mixed

Bajra

Mixed

Maize

Mixed

February, 2012

Jharkhand
Delhi
Tamil Nadu
U.P.
Gujarat
Delhi
Haryana
Maharashtra
Rajasthan
Delhi
A.P.
Karnataka
Haryana

Haryana
Gujarat
Rajasthan

Karnataka
A.P.

Gujarat
M. Pradesh

Rajasthan
A.P.
Karnataka
Maharashtra
Gujarat

Uttar Pradesh
Rajasthan

Jharkhand

621

Procurement of Rice
5093 thousand tonnes of Rice (including paddy
converted into rice) was procured during January 2012, as
against 4931thousand tonnes of Rice (including paddy
converted into rice) procured during January, 2011.The

total procurement of Rice in the current marketing season

i.e 2011-2012, upto 31-01-2012 stood at 21358 thousand
tonnes, as against 18803 thousand tonnes of rice procured,
during the corresponding period of last year. The details
are given in the following table:

PROCUREMENT OF RICE
(in thousand tonnes)
State

Marketing Season
Corresponding
Marketing Year
2011-12
Period of last Year
(October-September)
(up to 31-01-12)
(2010-11)
2010-11
2009 -10
Procure- Percentage Procure- Percentage Procure- Percentage Procure- Percentage
ment
to Total
ment
to Total
ment
to Total
ment
to Total

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Andhra Pradesh

2945

13.79

2015

10.72

9610

28.10

7555

23.58

Chhatisgarh

3377

15.81

2979

15.84

3743

10.95

3357

10.48

Haryana

1970

9.22

1652

8.79

1687

4.93

1819

5.68

95

0.44

79

0.42

308

0.90

229

0.71

7731

36.20

8634

45.92

8635

25.25

9275

28.95

455

2.13

223

1.19

1543

4.51

1241

3.87

Uttar Pradesh

2085

9.76

1382

7.35

2554

7.47

2901

9.06

Uttarakhand

204

0.96

219

1.16

422

1.23

375

1.17

2496

11.69

1620

8.62

5695

16.65

5282

16.49

21358

100.00

18803

100.00

34197

100.00

32034

100.00

Maharashtra
Punjab
Tamil Nadu

Others
Total

Source: Department of Food & Public Distribution.

Procurement of Wheat
The total procurement of wheat in the current
marketing season i.e 2011-2012 upto Aug. 2011 is 28144

thousand tonnes against a total of 22462 thousand tonnes

of wheat procured during last year. The details are given in
the following table :

PROCUREMENT OF WHEAT
(in thousand tonnes)
State

Marketing Season
Corresponding
Marketing Year
2011-12
Period of last Year
(April-March)
(up to 1-08-2011)
(2010-11)
2010-11
2009-10
Procure- Percentage Procure- Percentage Procure- Percentage Procure- Percentage
ment
to Total
ment
to Total
ment
to Total
ment
to Total

(1 )
Haryana

(2)
6891

(3)
24.48

(4)
6347

(5)
28.26

(6)
6347

(7)
28.19

(8)
5237

(9)
23.08

Madhya Pradesh

4894

17.39

3538

15.75

3539

15.72

2410

10.62

10957

38.93

10166

45.26

10209

45.35

9941

43.81

Rajasthan

1302

4.63

476

2.12

476

2.11

935

4.12

Uttar Pradesh

3460

12.29

1645

7.32

1645

7.31

3137

13.83

640

2.27

290

1.29

298

1.32

1029

4.54

28144

100.00

22462

100.00

22514

100.00

22689

100.00

Punjab

Others
Total

Source : Department of Food and Public Distribution.

622

Agricultural Situation in India

(ii) Commercial Crops

OIL SEEDS AND EDIBLE OILS
The Wholesale Price Index (WPI) of nine major
oilseeds as a group stood at 163.2 in January, 2012 showing
a rise of 4.0 per cent and 12.6 per cent over the previous
month and over the previous year.

The Wholesale Price Index (WPI) of all individual

oilseeds showed an increasing trend except of Copra (3.9
per cent) and Sunflower Seed (0.7 per cent) decreased over
the previous month. The WPI Groundnut seed (7.6 per
cent), Rape and Mustard (4.2 per cent), Cottonseed (0.1
per cent), Gingelly seed (2.5 per cent), Niger seed (3.1 per
cent), Safflower seed (1.4 per cent) and Soyabean (8.5 per
cent) increased over the previous month. The Wholesale
Price Index (WPI) of Edible Oils as a group stood 139.4 in
January, 2012 showing a rise of 1.8 per cent and 9.6 per cent
over the previous month and over the previous year. The
WPI of Groundnut Oil (4.1 per cent), Cottonseed Oil (1.0
per cent), Mustard Oil (2.8 per cent), Soyabean Oil (3.1 per
cent), Sunflower Oil (0.3 per cent) and Gingelly Oil (1.1 per
cent) increased compared to the previous month. However,
the WPI of Copra oil (0.1 per cent) decreased over the
previous month.
FRUITS AND VEGETABLES
The Wholesale Price Index (WPI) of Fruits &
Vegetables as a group stood at 161.5 in January, 2012
showing a decline of 2.8 per cent and 38.1 per cent over the
previous month and over the previous year.
POTATO
The Wholesale Price Index (WPI) of Potato stood at
98.9 in January, 2012 showing a decline of 10.7 per cent and

February, 2012

23.2 per cent over the previous month and over the previous
year.
ONION
The Wholesale Price Index (WPI) of Onion stood at
151.3 in January, 2012 showing a fall of 16.0 per cent and
75.6 per cent over the previous month and over the previous
year.
CONDIMENTS AND SPICES
The Wholesale Price Index (WPI) of Condiments &
Spices (Group) stood at 226.0 in January, 2012 showing a
fall of 4.9 per cent and 20.6 per cent over the previous
month and year respectively. The Wholesale Price Index of
Black Pepper, Chillies (Dry) and Turmeric decreased by 3.8
per cent, 5.7 per cent and 3.5 per cent over the previous
month.
RAW COTTON
The Wholesale Price Index (WPI) of Raw Cotton
stood at 204.4 in January, 2012 showing a fall of 2.7 per cent
and 13.6 per cent over the previous month and over the
previous year respectively.
RAW JUTE
The Wholesale Price Index (WPI) of Raw Jute stood
at 205.8 in January, 2012 showing an increase of 5.8 per
cent over the previous month. However, it decreased by
9.6 per cent over the previous year.

623

WHOLESALE PRICE INDEX OF COMMERCIAL CROPS FOR THE MONTH OF JANUARY, 2012
(Base Year : 2004-05=100)
Commodity

Latest
Jan., 2012

Month
Dec., 2011

Year

Percentage Variation over the

Jan., 2011

Month

Year

Oil Seeds

163.2

156.9

144.9

4.0

12.6

Groundnut Seed

207.1

192.4

154.3

7.6

34.2

Rape & Mustard Seed

164.6

157.9

136.9

4.2

20.2

Cotton Seed

140.2

140.0

133.4

0.1

5.1

Copra (Coconut)

105.1

109.4

118.7

3.9

11.5

Gingelly Seed (Sesamum)

220.2

214.9

247.4

2.5

11.0

Niger Seed

177.1

171.7

148.1

3.1

19.6

Safflower (Kardi Seed)

130.9

129.1

144.7

1.4

9.5

Sunflower

160.4

161.6

166.1

0.7

3.4

Soyabean

148.8

137.2

128.1

8.5

16.2

Edible Oils

139.4

137.0

127.2

1.8

9.6

Groundnut Oil

169.2

162.6

148.1

4.1

14.2

Cotton Seed Oil

150.8

149.3

131.7

1.0

14.5

Mustard & Rapeseed Oil

145.6

141.7

121.5

2.8

19.8

Soyabean Oil

151.6

147.1

134.5

3.1

12.7

Copra Oil

120.4

120.5

108.5

0.1

11.0

Sunflower Oil

135.3

134.9

128.7

0.3

5.1

Gingelly Oil

152.0

150.4

139.6

1.1

8.9

Fruits and Vegetables

161.5

166.2

261.1

2.8

38.1

Potato

98.9

110.8

128.7

10.7

23.2

Onion

151.3

180.1

619.4

16.0

75.6

Condiments and Spices

226.0

237.6

284.6

4.9

20.6

Black Pepper

424.9

441.6

274.4

3.8

54.8

Chillies(Dry)

266.2

282.4

230.9

5.7

15.3

Turmeric

161.6

167.4

453.2

3.5

64.3

Raw Cotton

204.4

210.0

236.6

2.7

13.6

Raw Jute

205.8

194.5

227.6

5.8

9.6

624

Agricultural Situation in India