AN INVESTIGATION INTO MARKETING CHANNELS AND MARGINS OF RICE IN DISTRICT MALAKAND

This study is aimed at determining the distributive marketing margins of rice and the shares of different marketing functionaries involved in the marketing margins in Batkhela Tehsil of Malakand district during the year 2004. It was observed that two mrketing channels 1) Producer®wholesalers (Pharia)® retailer®consumer and 2) Producer®beopari®wholesaler (Pharia)® retailer®consumer, involved in trading of rice in the study area. In channel 1, the producer received 17.90% net margin and 41.04% gross margin. However, in channel 2, it was found that the producer gained less net margin 36.36% and 14.54% gross margin. The main reason behind the reduction into net margin and gross margin was observed to be relatively low involvement of farmer in the marketing activities. Furthermore it was also observed that the lack of capital, poor extension services, high input price and lack of marketing channels were the main marketing problem of rice producers in the study area. Additionally total production, marketing intelligence, education, marketable surplus and marketing price are important variables affecting marketing margin