Supply Chain Analysis of Onion and Cauliflower in Punjab

The present study was conducted in Rajpura block of Patiala district in Punjab with a sample of 50 vegetables growers. The total cost of cultivation was estimated at Rs 49563/ha for onion and Rs 34840/ha for cauliflower. The net returns were found higher for onion (Rs 74597/ha) as compared to that from cauliflower (Rs 38072/ha). Majority of these vegetables were being disposed off through commission agent/wholesaler (more than 90 per cent) followed by retailer and directly to the consumer. The efficiency of the these market channels can be enhanced through competition by organized retail chains and modernizing the vegetable market system in the state. The wholesale markets of Pune, Ludhiana and Patiala for onion and that of Shimla, Ludhiana and Patiala for cauliflower have been found integrated with price of onion and cauliflower transmitting quickly from the independent to the dependent markets. The highest elasticity of price transmission in onion has been observed between Ludhiana and Patiala markets with almost 90 per cent of the price change in Ludhiana getting transmitted to the Patiala market. Such transmission has been 100 per cent for cauliflower between Shimla and Patiala markets. The price transmission has been observed faster in cauliflower than onion. Though a long-term equilibrium relationship exists between all the studied markets in terms of weekly price of the two vegetables crops, there also exists a short-run disequilibrium between some of the market pairs with almost 15 to 25 per cent of the fluctuations usually getting corrected within a week. Greater integration in these markets may help the farmers as well as consumers of the vegetables through better price signals