Market Dynamics and Efficiency of Urban Vegetable Marketing in Srinagar: An Empirical Assessment

Abstract

This study evaluates the structure, functioning, and efficiency of vegetable marketing systems in the Narkara urban vegetable cluster of Srinagar city. It explores the marketing channels, price spreads, and farmers’ share in the consumer rupee, highlighting inefficiencies caused by intermediaries and infrastructural bottlenecks. Using primary data from 60 farmers and 20 market functionaries, alongside Acharya’s marketing efficiency formula, the study identifies constraints and proposes policy reforms for a more inclusive and efficient marketing ecosystem.

Introduction

Urban vegetable markets are essential for linking peri-urban farmers with urban consumers, yet they often suffer from inefficiencies, high intermediary margins, and poor infrastructure. This study focuses on the Narkara cluster near Srinagar, a key supplier of vegetables to the city, evaluating its marketing channels, price efficiency, and challenges.

Key Insights:

1. Study Context and Methodology

• Location: Narkara cluster, Budgam district (7–9 km from Srinagar)

• Respondents: 60 vegetable farmers + 20 market functionaries (agents & wholesalers)

• Data Collection: Surveys covering production, pricing, costs, and constraints

• Analysis Tool: Acharya & Agarwal’s Marketing Efficiency (ME) formula

2. Vegetable Marketing Channels

Three major channels identified:

• Channel I: Farmer → Commission Agent → Wholesaler → Retailer → Consumer (63.3%)

• Channel II: Farmer → Retailer → Consumer (26.7%)

• Channel III: Farmer → Consumer (10%)

3. Price Spread & Efficiency (for Cabbage per 100kg)

• Conclusion: Fewer intermediaries → higher efficiency & better farmer earnings.

4. Major Constraints in Marketing (% of farmers reporting)

• Lack of cold storage: 78%

• Dominance of middlemen: 70%

• Price instability: 65%

• Transport issues: 52%

• Limited access to credit: 40%

These factors contribute to post-harvest losses, reduced income, and dependency on intermediaries.

5. Key Observations

• Most farmers prefer Channel I due to familiarity, despite lower returns.

• Direct sales (Channel III) offer full price realization but face logistical hurdles.

• Lack of infrastructure worsens price asymmetry—consumer prices rise while farmer earnings remain low.

6. Recommendations

• Establish Aggregation Centers for bulk sales and reduced logistics costs.

• Encourage Direct Marketing via farmers’ markets and digital platforms.

• Invest in Infrastructure: Cold chains, storage, and grading facilities.

• Expand Financial Access: Credit and insurance for peri-urban farmers.

• Distribute Market Intelligence: Real-time price data through mobile apps/SMS.

Conclusion

The urban vegetable marketing system in Srinagar, while vibrant, suffers from inefficiencies that erode farmer profits. Strengthening direct market access and investing in infrastructure are key to enhancing marketing efficiency and farmer welfare. Policy focus on integrating urban agriculture into mainstream economic planning is urgently needed.

References

[1] Acharya, S.S. & Agarwal, N.L. (2001). Agricultural Marketing in India. [2] Sehreen (2025). Performance Analysis of Urban Vegetable Cluster of Srinagar City. [3] Dastagiri et al. (2013). Price Spread and Marketing Efficiency in Vegetables. [4] FAO (2015). Food Security and Urban Markets. [5] Mishra et al. (2014). Marketing Channels in Indian Agriculture.

Copyright

Copyright © 2025 Sehreena Maqbool. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.