Value Chains and Retailing of Fresh Vegetables and Fruits, Andhra Pradesh

Abstract

The present study on retailing has been undertaken in Andhra Pradesh to examine growth and performance of modern retailing and its impact on traditional retailers. The study has indicated that the number of players is less in modern retailing than in the traditional retailing. Vertical analysis between the two chains has also indicated the same results. For instance, in the case of vertical distribution in the traditional value chain, 19.8 per cent of the gross value goes to farmers, 11.3 per cent goes to village merchant, 14.3 per cent goes to middlemen, 15.3 per cent goes to wholesalers, 12.0 per cent goes to commission agent, 16.8 per cent goes to rythu bazaar and the remaining 10.8 per cent goes to traditional retailers. Thus, the farmers rank first, and middlemen and wholesalers rank second, whereas in modern retailing, supermarkets receive 38 per cent of the total gross value. The study has revealed that there are both demand and supply side factors that contribute to the emergence of traditional and modern retailing. Hence, efficient, value chain management will certainly add value and help in bringing the produce to the market.