PRICE SPREAD AND MARKETING MARGINS OF CUT ROSE IN PUNJAB, PAKISTAN
Sajida Taj*, Muhammad Tariq Iqbal Khan**, Mazher Abbas and Arshed Bashir***
The paper analyzes the structure and operation of the flower marketing system in Punjab, Pakistan. Based on cross sectional data collected from 34 farmers, 13 wholesalers-cum-commission agents and 20 retailers from main flower producing areas of Kasur and Faisalabad districts from Punjab province, the structure and marketing margins of producers and other marketing intermediaries are quantified along the existing two marketing channels for cut flowers. In the first channel the main players were producers, wholesalers-cum-commission agents, retailers and consumers. In the second channel producers were directly linked with retailers. In Channel-I the highest consumer's price of Rs. 444.78 per 100 pieces of cut roses indicated that consumers have to pay more there. The price spread was greater in Channel-I which was Rs. 243.36 per 100 pieces of cut roses. In Channel-II where producers were directly linked with retailers, producer's share was maximized up to 46.86% which increases the marketing efficiency of Channel-II as compared to Channel-I. The study revealed that as the number of marketing intermediaries in the marketing channel increases the producers and consumers are least benefitted. Therefore there is need for more vertical integration in the cut roses market.