Question

Price spread will be least in marketing of ____________.

• A. Rice
• B. Milk
• C. Green leaves
• D. Coconut

Hint:

Perishable local produce (like green leafy vegetables) has very short marketing channels and minimal processing, resulting in the lowest price spread and the highest producer share.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Price spread is the difference between the price paid by the final consumer and the net price received by the producer.
A smaller price spread means the producer receives a larger share of the consumer's rupee, which typically occurs in highly direct marketing channels with minimal processing and few intermediaries.
Detailed Explanation:
Let us compare the marketing channels of the given commodities:
- Rice (A) and Coconut (D): Require processing, hulling, packaging, and long-term storage, involving many intermediaries and a larger price spread.
- Milk (B): Although organized cooperatives (like AMUL) are efficient, milk processing, pasteurization, and cold-chain logistics add significant marketing costs.
- Green leaves (C): Highly perishable leafy vegetables are typically harvested and sold directly by local farmers to local markets or consumers on the same day. Due to this direct marketing channel and lack of processing costs, the marketing margins are very low, resulting in the least price spread.

Step 2: Final Answer:
The price spread is least for Green leaves, which corresponds to Option (C).