AN ANALYSIS OF MARKETING COSTS AND MARGINS OF POMEGRANATE IN DISTRICT PISHIN, BALOCHISTAN-PAKISTAN

Abstract

This study was carried out with the aim to investigate the marketing costs and margins of different intermediaries involved in the marketing of pomegranate in district Pishin Balochistan Pakistan. A pre tested questionnaire was used to gather data from 120 respondents, with 20 wholesalers and 20 retailers. The results indicated that most farmers in the study area relied on the traditional marketing i.e., Producer → Commission Agent/Wholesaler → Retailer → Consumer. The results further revealed that the per acre total cost of pomegranate production was Rs. 425501, with land rent (23.7%) and wooden crates (28.2%) as major cost components.  The marketing cost analysis indicated that growers bear the highest marketing cost, particularly in transportation and handling while wholesalers and retailers incur relatively lower costs. The findings further showed that the marketing margin of growers, wholesalers and retailers was 64.2%, 20.2% and 27.1% respectively. The producer’s share in the consumer price was found to be 58.1%, which is relatively high; however, a significant portion of value (41.9%) was still absorbed within the marketing system. The price spread for growers, wholesalers and retailers was Rs53.36, Rs.21.11 and Rs.38.78 per kg, respectively. The study concluded that although pomegranate farming is profitable in the study area, growers receive comparatively lower returns due to high production and marketing costs, lack of storage facilities, poor market infrastructure, and limited access to market information. Wholesalers and retailers earn relatively stable margins due to their stronger position in the marketing process. Based on the results, it is recommended that the government should establish regulated markets at the local level, improve storage and transportation facilities, and enhance market information systems to reduce the role of intermediaries and increase the share of growers in the consumer price.  Introduce proper grading and packaging, plus branding routines so that the final product can satisfy the needs of high-value local domestic and for export markets.