Ph.D

Rice is the staple food of the people of Kerala. The rice market of Kerala consists of both branded and unbranded rice. Branded rice means the brand name or trade name of the rice which has been registered as per the Trademarks (Amendment) Act, 2010. In Kerala, Ernakulam district stands first with the highest number of branded rice manufacturers followed by Palakkad district. Pavizham, Periyar, Keerthi Nirmal and Double Horse are major rice brands of Kerala. As per the information from Kalady Rice Millers’ Consortium, 40 per cent of the consumers in Kerala prefer branded rice and out of this Kerala supplies 16 per cent and the rest is from outside states. Despite the deficiency in rice production, Kerala exported 0.50 per cent of rice during the period 2021-22 (Export Import Bank of India, 2023). The study aimed to analyse the market structure and conduct of branded rice in Kerala and to assess the performance of branded rice market as well as identify the constraints faced by the stakeholders in the branded rice market within Kerala. Both primary and secondary sources were used for the collection of data. The study area was confined to Ernakulam and Palakkad districts of Kerala, identified based on a higher number of rice mills. Primary data were collected from 30 farmers, one agent, five exporters, 10 non-exporters, 20 wholesalers, 30 retailers and 120 consumers selected through a purposive sampling method. Pre-tested structured interview schedule designed separately for different stakeholders. Secondary data were collected from published reports and official websites of the Government of Kerala, the Government of India and the Food and Agriculture Organisation. The survey was conducted during the period of November, 2023 to June, 2024. Market concentration ratios, marketing margin, marketing efficiency, price spread, Garrett’s ranking technique and SWOC matrix were used for analysing the data. The selected farmers in Palakkad district were cultivating high-yielding types of paddy varieties, namely Uma, Jyothi and Kanchana and Ponmani. In the open market, the paddy prices vary depending on the variety. Major portion (59 %) of the paddy from the farmers was procured by SUPPLYCO, 25 per cent by private manufacturers of branded rice, and only 16 per cent by PADDICO. The branded rice market follows an oligopolistic behaviour. The top four rice brands, including Pavizham, Keerthi Nirmal, Periyar and Kottaram, contributed to 86.43 per cent of the market share. The private rice manufacturers were acquiring information on sources for paddy from brokers and online sources. But the co-operative society was acquiring information on sources for paddy from member farmers and interstate agents. The private manufacturers were fixing the selling price based on the market price and cost-plus pricing strategy. The PADDICO was fixing the selling price based on the decisions taken by the purchasing committee and the market price. Even though the rice brands produced within Kerala were limited, the interstate brands traded into the state, made an effective competition in the market. The wholesalers were getting information on the source of branded rice, product attributes and price from private rice manufacturers as well as agents from other states. While the retailers get information from the wholesalers & private rice manufacturers. In addition to this, the media act as a source of information on price to both wholesalers and retailers. Wholesalers and retailers in the branded rice market often adopt a cost-plus pricing strategy to determine their selling price. A total of six marketing channels of branded rice sales were identified from the study. Five of them were to domestic channels and one was for the international channel. ‘Channel I’ was dealing with co-operative society, which stands out as the most efficient with a marketing efficiency of 0.50 and the lowest price spread. In contrast, ‘channel II’ was dealt with by private rice manufacturers, which had the lowest marketing efficiency (0.42), attributed to the highest price spread and the highest marketing margin, reflecting greater intermediary involvement. ‘Channel I’ contributed to 71.28 percentage of producer’s share in consumer’s rupee. Among the marketing channels of private manufacturers of branded rice, ‘channel IV’, with direct sales to consumers, had the highest producer’s share in consumer’s rupee (68.24 percentage). The marketing efficiency of the export channel was 0.36, indicating inefficiency due to high cost and margin. Among the six varieties of branded rice, Vadi matta had the highest sales in both the domestic and international market. The rice varieties, namely Unda matta and Vadi matta, were exported mainly to the UAE followed by Saudi Arabia. The consumers were highly satisfied with the packaging of branded rice and dissatisfied with promotional efforts. Farmers faced difficulties in rice production due to high input costs, and high labour costs. Delay in procurement from SUPPLYCO and inadequate facilities for drying and cleaning forced them to sell their produce in the open market. Lack of adequate subsidy from government and lack of sufficient quantum of credit from financial institutions were the major financial constraints faced by farmers. Lack of transportation facilities, high maintenance cost of machinery and financial difficulties were the major constraints faced by PADDICO. High transportation cost, high capital investment and price volatility were the major constraints faced by private manufacturers of branded rice. Strenuous documentation & procedures were the major constraint faced by exporters. The above factors abstain the non-exporters from entering the international market. Lack of demand for branded rice was the major constraint faced by the wholesalers and retailers. The high price of branded rice was the major constraint faced by the consumers. The study recommended that private manufacturers with modern milling and storage facilities can expand their distribution channels by developing e-commerce partnerships. They can also expand product differentiation by producing value-added products. Work closely with local paddy farmers to ensure sustainable practices by providing training and resources through contract farming, which may help to enhance crop yield and farming. Thereby, the quality of the paddy produced by the farmers can be ensured. The manufacturers of branded rice can avail the assistance of NABARD in creating a strong brand identity and marketing strategy, including guidance on packaging, labelling and promoting products in the marketing of branded rice. The non-exporters of branded rice can enter into the international market by availing the assistance and support provided by APEDA. PADDICO also can avail the financial assistance provided by NABARD for purchasing modern machines, enhancing production facilities and expanding operations.