emperor international journal of finance and management

EMPEROR INTERNATIONAL JOURNAL OFFINANCE AND MANAGEMENT RESEARCH

[EIJFMR]

ISSN : 2395-5929

Founder | Publisher | Editor Dr. R. MAYAKKANNAN,

Assistant Professor of Commerce,

Sri Sankara Arts & Science College,

Enathur, Kanchipuram,

Tamilnadu, India.

Chief Editor

Dr. C. THIRUCHELVAM, Head & Associate Professor of Commerce H.H.The Rajah’s College (Autonomous),

Pudukkottai, Tamilnadu.

Volume-II Issue-03 March- 2016

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Typewritten text

Mayas Publication™ 45/5, Unathur & Post, Attur Tk., Salem Dt. Tamilnadu, India – 636112 No:03, Sri Vinayaka Mandir,4B Block Sarojini Nagar, New Delhi, India-110023 Narayanapuram Po. Templegate, Thalassery-2, Kannur Dt. Kerala.-670102

Emperor International Journal of Finance and Management Research [EIJFMR]

Published by

Mayas Publication™

# 45/5 Unathur. Post Attur. Tk, Salem. Dt Tamilnadu, India

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SCHOOL OF COMMERCE, MANAGEMENT, ECONOMICS

Dr.Balakrishnan

Department of International Business,

Administration,

Nizwa College of Applied Science,

Sultanate of Oman

Dr.Pratapsingh Chauhan

Dean and Syndicate Member,

Saurashtra University, Rajkot,

Gujarat. India

Dr.Kuppusamy Singaravelloo

Department of Administrative Studies and

Politics,

Faculty of Economics and Administration,

University of Malaya, Malaysia.

Dr. Bharati Pathak

Professor, School of Commerce,

Gujarat University, Ahmadabad, India

Dr. Mohan

Professor of Commerce,

Management and Information Sciences,

Sri Venkateswara University, Thirupati,

Andhra Pradesh, India

Dr.Meenu Meheshwari

Assistant Professor,

Department of Commerce and Management,

University of Kota, Kota

Dr. G. Raju


School of Management Studies,

University of Kerala

Thiruvanathapuram- 695 581 Kerala, India

Dr.Vijaya


Gulbarga University,

Gulbarga, Karnataka state

Dr. R. Periyasamy

Head & Assistant Professor,

Department of Commerce,

Barathiyar University Constitutional

College, Coimbatore, Tamilnadu, India

Dr.T.J.Arun

Associate Professor of Commerce,

Annamalai University, Chidambaram,

Tamilnadu,India.

www.eijfmr.com [email protected]

Chief Editor

Dr. C. THIRUCHELVAM,

Head & Associate Professor of

Commerce

H.H.The Rajah’s College (Autonomous),

Pudukkottai, Tamilnadu

Editor & Founder

Dr. R. MAYAKKANNAN,


Sri Sankara Arts & Science College,

Enathur, Kanchipuram, Tamilnadu,

Dr.A.Ravikumar


Bishop Heber College (Autonomous),

Puttur, Trichy-17

Dr.N.Bharathidhasan

Assistant Professor in Commerce,

Dr.Ambedkar Goverment Arts College

(Autonomous),Vyasarpadi, Chennai.

Tamilnadu

Dr.Leela


T.S.Narayanaswami College,

Chennai, Tamilnadu

Dr .K.Krishnamurthy


Periyar Government Arts College,

Cuddalore

Dr. C. Saraswathy


VELS University, Chennai, Tamilnadu

Dr. R. Mathavan


Kandaswami Kandar’s College,

P.Velur, Namakkal (DT) Tamilnadu

Dr. S.Prabhu

Head & Assistant Professor of Commerce

Bharthi College of Arts and Science,

Thanjavur -613 007 Tamilnadu

Dr.F.Elayaraja

HOD of Commerce TKU Arts College

Karanthai, Thanjavur, Tamilnadu.

Dr. R. Hariharan


National College,

Trichy, Tamilnadu

Dr. L.Gomathy


Agurchand Manmull Jain College,

Meenambakkam, Chennai – 600114

Dr.S.Raju

Assistant Professor of Commerce

A.V.V.M Sri Pushpam College

(Autonomous)

Poondi-613503, Thanjavur.

Dr.V.Dheenadhayalan

Assistant Professor in Commerce,

Annamalai University, Chidambaram.

Dr.Bama Sampath

Assistant Professor of Commerce

Dr.Ambedkar Govt. Arts College

Chennai-39.

Dr. R. Vasudevan

Assistant Professor in Corporate Secretary

Ship, D. G. Vaishnav College, Chennai

Dr.A.L.Mallika

Associate Professor and Head,

Department of Management Studies,

Mother Teresa Women’s University,

Kodaikanal.

Dr. P. Uma Meheshwari

Assistant Professor of Economics

Barathiyar University College,

Coimbatore, Tamilnadu, India

Dr.Dhanalakshmi Acharya

Bangalore Business School,

Andhrhalli Main Road, Bangalore

Dr.A.Vijaykanth

Assistant Professor of Economics,

Dr.Ambedkar Government Arts

College (Autonomous),

Vyasarpadi, Chennai-39, Tamil Nadu.

Dr. V. Rengarajan

Assistant Professor, Management Studies

SASTRA University, Thanjavur.

Dr.Ramanathan,

Principal and Head,

Nethaji Subbash Chandra Bose College,

Tiruvaurur

Dr.P.Arunachalam

HOD , Department of applied Economics,

Cochin University, Kerala.

Dr.S.R.Keshava

Professor of Economics

Bangalore University, Bangalore.

Dr.S.Chinnammai

Associate Professor of Economics,

University of Madras, Chennai,

Dr.A.Ranga Reddy

Professor Emeritus,

Sri Venkateshwara University

Andhra Pradesh.

Dr. V.Vijay Durga Prasad

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Management Studies

PSCMR College of Engineering and

Technology

Kothapet, Vijayawada -520 001 A.P

Dr.A.Alagumalai

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P.T.M.T.M.College Kamudhi, 623 604

Ch. Anjaneyulu

Assistant Professor

Department of Business Management

Telangana University

Dichpally—Nizamabad, Telangana—India

Dr .Ishwara P

Professor in Commerce

Department of Commerce,

Mangalore University Karnataka

Dr.G.Parimalarani

Associate Professor

Department of Bank Management

Alagappa University

Karaikudi, Tamilnadu

Dr.Rambabu Gopisetti

Chairman, Board of Studies in Commerce

Department of Commerce


Dichpally, Nizamabad

Telangana State -503322

Ms.Bhagyshreehiremath

Assistant Professor of Economics

Indian Institute of Information Technology

Dharwad

Prof.M.Yadagiri

Head & Dean

Faculty of Commerce


Dichpally--Nizamabad--503322

Telangana State – India

Dr. C. Theerthalingam

Head & Assistant Professor of Economics,

Government Arts College (Men),

Krishnagiri – 635001

Dr.G. Uppili Srinivasan,

Assistant Professor of Management Studies,

SASTRA University, Tanjore.

SCHOOL OF COMPUTER SCIENCE, ENGINEERING & TECHNOLOGY

Prof. Naveen Kumar

Associate Professor

Department of Computer Science,

University of Delhi, India-110007

Dr. Rakesh Kumar

Mandal Secretary, CSI, Siliguri

Chapter Assistant Professor

School of Computer Science & Application

North Bengal University P.O.

Darjeeling West Bengal – 734013

Dr. D. Roy Chowdhury

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School of Computer Science & Application

University of North Bengal

Dr. Ardhendu Mandal

Assistant Professor

School of Computer Science and

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University of North Bengal (N.B.U)

Dr. Ms. Bhagyashree D. Hiremath

Assistant Professor

Department of Computer Science and

Engineering

Indian Institute of Information Technology

Dharawd.

SCHOOL OF AGRICULTURAL & RURAL DEVELOPMENT AND EDUCATIONAL

TECHNOLOGY, ENVIRONMENTAL SCIENCE

Dr.V.M.Indumathi

Assistant Professor

Dept. of Agricultural and Rural

Management

Tamil Nadu Agricultural University,

Coimbatore - 641 003

Dr. M.Mirunalini

Assistant Professor

Department of Educational Technology

Bharathidasan University,

Khajamalai Campus

Thruchirappalli – 620 023

Dr.S.Angles

Assistant Professor

Department of Agricultural Economics,


Coimbatore, Tamil Nadu, India

Pin Code – 641003

Dr. K. Boomiraj

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Department of Environmental Sciences,


Coimbatore- 3.

R.Ganesan

Professor and Head, Department of English,

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Prof. V.Murugaiyan

Assistant Professor

Post Graduate & Research

Department of History

H.H.Rajah’s College, Pudukottai.

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Assistant Professor of English

Sri Bharathi Arts & Science College for

Women

Kaikkurichi, Pudukottai.

SCHOOL OF MATHEMATICS, PHYSIC, EARTH SCIENCE, BOTANY, CHEMISTRY,

MOLECULAR BIOLOGY, ZOOLOGY

Dr. P.K. Omana

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Ministry of Earth System Science,

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National Centre for Earth Science Studies,

Trivandrum, Kerala

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Department of Mathematics

V V College of Engineering

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Tamil Nadu, South India

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School of Physics

University of Mumbai.

Mumbai-400098 India

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Principal, University College of Science

Head, Department of Botany


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Insect Biochemistry and Molecular Biology

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Federal Democratic Republic of Ethiopia

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Emperor International Journal of Finance and Management Research [EIJFMR] ISSN: 2395-5929

Emperor International Journal of Finance and Management Research [EIJFMR] ISSN: 2395-5929 Page 51

MARKETING OF JAGGERY IN SALEM DISTRICT

S.VIDHYA

Ph.D Research Scholar in Commerce,

Govt. Arts College (Autonomous) Karur.

Introduction

Sugar industry in India is a well-developed

industry and one of the largest after

textiles. It provides rural employment

opportunities and plays an important role

in Indian economy. Jaggery is also

manufactured from sugarcane juice and is

very widely used not only in individual

households but also in many eateries,

restaurants, clubs and hostels an it has

certain industrial applications as well.

Manufacture of sugar involves many

technical aspects and the capital

investment is also on the higher side.

Compared to this, production of jiggery is

very simple and the capital cost is also

very limited. Due to its wide applications,

the market for jiggery is continuously

growing.

Statement of the Problem

Fluctuating price is the common problem

in jiggery industries. Marketing of Jaggery

in Salem District presents serious

problems to be attended immediately so as

to save the farmers from the impact of

declining prices and to increase their profit

in the sale of jaggery manufactured.

Attempts are needed to redress the

grievances of jaggery manufactures on a

permanent basis. To this effect a study is

felt necessary, the results of which would

help the policy makers to understand the

costs, price fixation, home trade, etc.

pertaining to marketing in Salem District.

Objectives of the study

The present study has been undertaken

with the following specific objectives.

1. To estimate the cost of production of

jaggery.

2. To identity and describe the existing

market structure and marketing

channels for jaggery.

3. To analyze the price spread.

4. To examine the problems in the

marketing of jiggery and suggest

solutions based on the results thereof.

Methodology

In this study, field survey technique is

adopted to examine the present marketing

situation of jaggery. For this purpose three

schedules were prepared. The schedules

are administered as follows.

Schedule No: 1

Salem district as a whole constituted the

universe. By random sampling 10 villages

spread over two taluks were selected. In

each village 10 farmers were selected by

random sampling. Thus, a multistage

random sampling was followed in the

present study, the villages and taluks

selected were as follows:



Names of villages covered for the study

Name of the Village Name of the Taluk

Karuppur Omalur

Vellalapatti Omalur

Kamalapuram Omalur

Karumpalai Omalur

Mettupatti Omalur

Mamangam Salem

Raddipatti Salem

Sivadapuram Salem

Attayampatti Salem

Old Suramangalam Salem

Schedule No.2.

Schedule number 2 was used to collect

information from wholesalers in Salem

(Shevapet) Jaggery Market. There are 40

small and big wholesalers are functioning

in Salem District. 20 wholesalers were

selected on the basis of random sampling.

Schedule No .3.

Schedule Number 3 was used to collect

information from 30 retailers functioning

at different parts of Omalur and Salem

taluks.

To find out the role played by the various

agencies in the field of marketing of

Jaggery, the office bearers and staff of the

following are interviewed.

a) The President, the Secretary and

Members of “The Salem District Jaggery

Manufactures and Farmers Association”,

Salem.

b) The Secretary and staff of “Regulated

Market Committee” at Firlands, Salem-16.

c) The President “Jaggery Merchants

Association”, Shevapet, Salem-2.

d) The Staff of “Salem District Co-

operative Marketing Society, Pallapatti,

Salem-4.

Salem District as a whole constituted the

universe. By random sampling 10 villages

spread over two Taluks were selected. In

each village 10 farmes were selected by

random sampling. Thus, a multistage

random sampling was followed in the

present study, the village and taluks

selected were as follows.

Period of study

The data for the period 2014 - 2015 were

collected through personal interview with

the selected respondents with the help of a

pre-tested questionnaire.

Limitations

The method adopted for collecting the data

on cost of production and marketing

aspects, has certain limitations. Farmers

and traders do not maintain records and

accounts and hence, furnish the data from

their memory and experience. Therefore,

the information gathered is not free recall

bias, though care has been taken to



minimize the bias. Another limitation is

that the present study is confined to figures

relating to only one year, i.e., 2014-2015.

Sugarcane production in salem district

The particulars are regarding the area

under sugarcane cultivation is given in

Table. There are 12 taluks in Salem

District. The cultivation area in Yercaud

taluk in nil due to hill area. In the salem

district is nearly 57% of the total area of

sugarcane cultivation of the district. The

secret of larger area of cultivation is due to

the existence of a sugar factory at

Mohanur called „Salem District Co-

operative Sugar Factory, Mohanur‟ and the

Omalur taluk is famous for jaggery

manufacturing and ranks as the second

largest area of cultivation fo sugarcane in

this taluk by covering 1524 hectares.

Atleast 90% of the cane production is

utilized for manufacturing jaggery. The

important places of production in this taluk

includes.

a) Karuppur

b) Vellalapatti

c) Kamalapuram

d) Muthunaickenpatti

e) Thekkampatti

f) Omlur

g) Saminaickenparri

h) Mettupatti

i) Thinappatti

j) Karumpoo Alai etc.

More than 50% of the jaggery arrivals to

the Salem Market are from this taluk. The

Salem, Attur, Sankagiri, Tiruchengodu

taluks are also playing important role in

the production and Marketing of jaggery in

Salem District. “The Salem District

Marketing Committees” Annual Report for

2012 - 2013 reveals the total area,

production and value of jaggery in 2014-

2015

Findings

The manufacture of jaggery is one of

the most important cottage industries

in India. More than 50% of the cane is

utilized for jaggery manufacture.

Jaggery contains all the nutrients such

as protein (0.25%) Fat (0.25%), Source

(65.71%), Clucose (21,18%), Clucose

(21.18%), Calcium (4%), Phosphate

(1.4%), and Moisture (7.2%), which

are available in juice , while the sugar

contains only 99.7% sucrose and very

little moisture i.e., 0.3%.

Sugarcane is a perennial grass that

grows from 8 to 24 feet in height and

belongs to the tropical and sub –

tropical regions.

India ranks first in sugarcane

production, but in actual production of

raw sugar, the country is very much

behind Brazil.



There are 1000 units engaged in

jaggery manufacture in Salem District

during busy season.

Leading among the taluks in Salem

District by having operational

sugarcane area of 8543 hectares.

The area, production, disposable

surplus and the value of jaggery in

Salem District is 32594 tonnes.

In Tamil Nadu, the utilization of

sugarcane for production of jaggery is

higher than the national average of

57%.

The per capita consumption of sugar

and jaggery per annum is 10.5Kgs.

And 13.7 Kgs.

In 2014, the Jaggery is brought by

Government of Tamil Nadu under

“Essential Commodities” list.

Due to the perishable nature of the

produce, lack of storage facilities, lack

of alternate market nearby, lack of

active role of Regulated market in

Salem, lack of control and regulation

over the price of jaggery by the

Government etc. Compel the jaggery

manufactures to dispose off their

produce at „throw away‟ prices.

No trader is providing with loans and

advances by commercial banks.

Profit margin in jiggery is very low.

Suggestions

Marketing cost of the farmers and the

producers can be reduced by selling

through Regulated Market.

The findings in the present study show

an imperfect market structure.

“Jaggery Export Corporation

establishment of a corporation will also

ensure a fair price for the farmers.

Jaggery is generally stored by the

traders in go downs on a large scale

whereas farmers used to store only

small quantities for their consumption

purposes. Therefore storage facilities

should be extended and enlarged to

large farmers also.

The important by-products available

from the jaggery manufacturing

industries are Bagasse, Molasses etc

should be defueled in the study area.

Under the Essential Commodities list

issued by the Government of Tamil

Nadu, only licensed jaggery merchants

can sell the commodity to the other

licensed traders. Hence licensing

should be liberalized.

Conclusion

Jaggery consider as a poor man sugar. The

production of jaggery is very simple and

required less capital. This feature of

jaggery enables the farmers to startup to

own production unit. Frequent flexiation in

the price of jaggery lack of storage



facilities higher price spread, improper

utilization bagasse and molasses affect the

profit margin of the producers. Hence,

necessary steps to the needed from the

administrative authorities to remove all the

defects. Regulated market should be

enlarged in away that farmers get

remunerative price for the product.

Reference

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Fundamentals of Modern marketing,

Printice/Hall of India Private Limited,

New Delhi, 1974.

2. Davar, Rustom, S – Modern Marketing

Management, Progressive Corporation

Pvt., Ltd., Bombay – Madras 1977.

3. Gupta, K.R. – Issues in Indian

Agriculture, Atlantic Publishers and

Distributors, New Delhi, 1980.

4. Memoria, C.B. – Rural Credit and

Agricultural Co-Operation in India,

Kitab Mahal, Allahabad, First Edition,

1983.

5. Kotler, Philip – Marketing

Management, Printice Hall Of India

private Limited, fourth Edition, New

Delhi. 1980.

6. Rajan Nair. N – Marketing Sultan

Chand & Sons, New Delhi. 1980.

7. Sherlekar, S.A – Marketing

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House, Bombay, Second (Revised)

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8. Sinha, J.C – Principles of Marketing &

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NewDelhi – 2, 12th

Received Edition

1982.

9. Sripati Ranganadha – Text-book of

Marketing Management S.Chand &

Co.Ltd., 1983.

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Marketing, McGraw Hill International

Book Company, Sixth Edition, 1980.

11. Subbi Readdy. T. – Marketing

Management, S. Chand & Company

Ltd., New Delhi, 1981.

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