Post-harvest profile of red gram - Agmarknet

5.2 Marketing costs and margins:Marketing costs:Marketing costs are the actual expenses incurred in bringing goods and services fromthe producer to the consumers. The marketing costs normally include(i)(ii)(iii)(iv)(v)(vi)handling charges at local pointsassembling chargestransport and storage costshandling charges by wholesalers and retailersexpenses on secondary services like financing, risk taking and market intelligence,andprofit margins taken by different agencies.Marketing margins:Margin refers to the difference between the price paid and received by a specificmarketing agency such as a single retailer, or by any type of marketing agency, i.e. retailers orwholesalers or by any combination of marketing agencies in the marketing system as a whole.The total marketing margin includes cost involved in moving the Red gram from producer toconsumer and profits of various market functionaries.Total marketingmarginCost involved in moving=the Red gram from+producer to consumerProfits of variousmarketfunctionariesThe absolute value of the total marketing margin varies from market to market, channelto channel and time to time. The marketing cost incurred by farmers and traders at Regulatedmarkets includes i) Market fee, ii) Commission, iii) Taxes, and iv) Other miscellaneouscharges.i) Market fee: Market fee or entry fee is collected by the market committee of the market. It ischarged either on the basis of weight or on the basis of the value of the produce. It is usuallycollected from the buyers. The market fee differs from state to state. It varies from 0.5 percent to 2.0 per cent ad valoram.ii) Commission: It is paid to the commission agent, and may be payable either by seller or bythe buyer or sometimes by both. The charge is usually made in cash and varies considerably.iii) Taxes: Different taxes are charged in different markets such as toll tax, terminal tax, salestax, octroi etc. These taxes leviable differ from market to market in the same state as also fromstate to state. These taxes are usually payable by the seller.iv) Miscellaneous charges: In addition to the above mentioned charges, some other chargesare levied in markets. These include handling and weighment charges (weighing, loading,unloading, cleaning etc.), charity contribution in cash and kind, grading charges, postage,charges payable to water man, sweeper, choukidar etc. These charges may be payable eitherby the seller or by the buyers.40