Pricing Analysis, Pricing Variability & Price Forecast of Tomato in India

Bachelor Thesis from the year 2013 in the subject Agrarian Studies, grade: 9.80, , course: Agri Business Management, language: English, abstract: STUDY ON PRICING VARIABILITY OF TOMATO IN WESTERN TAMIL NADU

India is the second largest producer of vegetables in the world, contributing 14% of the total world vegetables production. In India, tomato is the most widely grown vegetable crop with a share of 10 per cent and occupies third position. In this crop we observe more price variation due to increased supply of tomato than market demand which leads to glut in market followed by price reduction. The above price fluctuation was found to be significant which affects the economy of small and marginal farmers who are mostly involved in cultivation of tomato. For the benefit and welfare of these farmers it becomes necessary to forecast the tomato price. Based on these forecast, farmers can make cropping decision and avoid economic losses. The study conducted in western Tamil Nadu for past five month revealed that tomato price will raise in April which is forecasted through three month moving average. These are the prices of 10 kg tomato in the following markets, Kinathukadavu-Rs.73.6, Pollachi- Rs.107.9, Mettuppalayayam- Rs.47.7, Oddanchatram- Rs.55.5. Farmers are using the traditional marketing channels for marketing the tomato though there are latest developments like farmers shandy (Uzhavar chanthai). Only minimum quantities of tomato are being sold through farmers shandy and rest through commission agents. By analyzing this major share of Rs.4.5/Kg goes to middlemen's/ Commission agents.