RURAL-URBAN RETAIL PRICES AND MARKETING MARGINS OF FRESH FRUITS AND VEGETABLES IN PAKISTAN
Sonila Hassan, Abid Hussain*, Muhammad Azeem Khan** and Irfan Mahmood*
ABSTRACT
The study was designed to estimate the marketing margins and rural-urban price differences of fresh fruits and vegetables. A checklist and an open-ended questionnaire were developed and used to interview a total of 200 retailers (rural and urban), 100 producers, 30 commission agents and 10 transporters in July 2010. Price data were collected from rural and urban retailers in Hyderabad, Faisalabad, Peshawar, Muzaffarabad and Quetta. It was observed that the retail prices of fresh fruits and vegetables were higher in rural markets as compared to urban markets and differences were even higher in vegetables as compared to fruits. For fruits the difference ranged from 8.6-25.0% in Hyderabad, 5.2- 39.0% in Faisalabad, 2.3-22.0% in Muzaffarabad, 20.0-50.0% in Peshawar and 11.0% in Quetta. Difference in rural-urban retail prices for vegetables varied between 12.0-36.0% in Hyderabad 6.3-89.0% in Faisalabad, 4.0- 25.0% in Muzaffarabad and 6.7-66.7% in Quetta. The producer's share of the price was more or less 25.0% for most fruits and vegetables. It was observed that the total marketing margin for potatoes was 84.2%, onion 130.8%, persimmon 334.8%, pear 128.6%, banana 371.7%, sweet lemon 389.8%, and guava 176.2%. The net margin to intermediaries for potatoes, onion, persimmon, pear, banana, sweet lemon, and guava was accounted at 43%, 111.4%, 316.5%, 104.5%, 353.9%, 370.8% and 152.4%, respectively.
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