On Approximate Pricing of Spread Options via Conditional Value-at-Risk

It is widely accepted to use conditional value-at-risk for risk management needs and option pricing. As a rule, there are difficulties in exact calculations of conditional value-at-risk. In the paper, we use the conditional value-at-risk methodology to price spread options, extending some approximation approaches for these needs. Our results we illustrate by numerical calculations which demonstrate their effectiveness. We also show how conditional value-at-risk pricing can help with regulatory needs inspired by the Basel Accords.

Study on Marketing Channels of Black Pepper in Kolli Hills of Namakkal District in Tamil Nadu

Aim: The present study was conducted with the aim to analyze the marketing cost, margin, price spread and marketing efficiency of farmers in different marketing channels of Black pepper in Kolli Hills of Namakkal district. Methodology: About 80 farmers were interviewed for this study. Data related to marketing performance of black pepper was collected using the well-structured pre tested interview schedule and the results were tabulated. Results: Among the different marketing channels, total marketing cost was low in channel III (Rs.39/Qtl) as compared to channel II (Rs.92/Qtl) and channel I (Rs.74/Qtl). This shows that marketing cost was low if the channel does not have any market intermediaries. The best channel for both producer and consumer were found to be channel III in which producers receives the maximum share of consumers rupee (89.46 per cent) and consumers purchase the produce at the low price of Rs. 370/Qtl. Conclusion: This study reveals that, among the other marketing channels, channel III has the highest marketing efficiency of 9.48 per cent and 8.48 per cent. Middleman exploitation was the major problem which reduce the net income of the farmers in the study area.

"Marketable and Marketed Surplus and Price Spread of Vegetables in Phek District, Nagaland"

Vegetables are part and parcel of the daily healthy human diet. There will always be a demand for the vegetables in the market; the supply side has to keep up with the demand. With this regard, the study was carried out in Phek district, Nagaland, where the production and marketing of vegetables are well recognized. Three primary vegetables, cabbage, beans, and potato, were selected for the study from twelve villages from the sample population of 300 farmers in 2016-2017. The study was carried out to find out the marketable, marketed surplus, and the price spread in the marketing of the selected vegetables. Three marketing channels were observed, where Channel I (Farmer to consumer) played a significant role in terms of net returns received by farmers, lower cost, and non-existence of price gap. The result shows that the production, marketable surplus, and marketed surplus of cabbage was found to higher than beans and potato. To enhance and boost up production and marketed surplus, it is recommended to prioritize Channel I, infrastructural development, and extension services.

Economics of Mango Production, Marketing System and Constraints Faced by Growers in Lucknow District of Uttar Pradesh

Background: Mango is an important commercially grown fruit crop and it is very popular due to its wide range of adaptability and high nutritive value. The present study was conducted in Lucknow district of Uttar Pradesh to know the economics of mango production, marketing system and constraints faced by growers in production and marketing.Methods: The study was based on primary data collected from 200 respondents with the help of personal interview using a pre-tested questionnaire, semi-structured interview schedule and open discussion method. Estimate the cost and return of mango cultivation by using simple cost and return equation. The marketing system of mango involved market channels, margin, cost, price spread, producer share in consumer’s rupee and marketing efficiency was worked out by tabular analysis. The Garrett’s ranking technique was adopted to rank the constraints faced by the growers in production and marketing of mango.Result: The total cost of mango cultivation was found Rs.23450.67/ha. Out of which, the variable cost was constituted Rs.18316.39/ha (78.11%) and fixed cost was Rs.5134.28/ha (21.89%). The net return over the cost of cultivation was found to be highest as Rs. 62811.59/ha at the 4th growing stage of orchard. It was observed that net price received by growers, per cent share in consumer’s rupees and market efficiency was highest in channel-III followed by channel-II and III, where the numbers of marketing intermediaries were involved lesser. The market margin, cost and price spread were highest in channel-I followed by Channel-II and III. The channel-III was found to be most efficient and profitable for farmers in the study area. Among the production and marketing constraints faced by mango growers, the shattering of flowers and premature fruit drop were cited as the most serious constraints. While alternate and irregular bearing creates glut with excess production in one year and results in low production in the next year was reported as second major constraint. Usually, contractors were not paying money to the orchard owner in the lump sum amount and at the appropriate time. Thus, the second major constraint was delayed and irregular payments to producers.

Marketing of sweet jelly seeds of palmyra fruit: A study covering the tribal region of South Gujarat, India

Palmyra is a naturally occurring vegetation in Gujarat’s southern region, spread randomly overall soil and land types. The major produce utilized from palmyra palm for a livelihood by the tribal community, contributing considerably to their income, is through sales of the immature soft jelly seed nuts of the fruit called “galeli”. The present investigation was carried out to study the marketing cost, margin, and price spread in galeli marketing. Primary data for the period initiating from 2015-16 to 2017-18 were pooled from 50 palmyra palm growers selected randomly representing five tribal villages of Mahua taluka of Surat district in the South Gujarat region. Two marketing channels viz., Channel-I: producer-consumer and Channel-II: producer - retailer - consumer were observed, and the marketing cost incurred on galeli marketing in these channels was worked out, which was `51.64 and 33.94 per hundred galeli, respectively. The highest producer’s share in consumer’s rupee was worked out in channel-I. The study showed that the major constraint faced by 78 per cent of the palmyra palm growers in the marketing of galeli was the poor functioning of the climber equipment and non-remunerative prices for galeli in the local market.

Marketing Efficiency of Different Marketing Channel of Mustard Crop in Swai Madhopur District of Rajasthan

An attempt has been made to study the Comparative Marketing Efficiency of different marketing channel with reference of mustard crop in Swai Madhopur district of Rajasthan. The study was conducted in Chauth Mata Agro Producer Company Limited; Chauth ka Barwada blocks in Swai Madhopur district. For each selected randomly villages, a separate list of mustard growing farmers was prepared and 80 farmers, processor, retailers, wholesaler and consumers were selected. The primary data were collected from the mustard producers and market functionaries through personal interview method with the help of well prepared schedule and questionnaire for the production and post-harvest year for Rabi mustard 2017-18. The market efficiency of FPOs and Non FPOs channel worked out to be 1.23 and 1.09, respectively. Price spread of FPOs and Non FPOs channel work out to be 43.19 and 46.11 percent, respectively. Producer’s share in consumer’s rupee of FPOs and Non FPOs channel out to be 55.86 and 52.71 percent, respectively. The market margin and marketing cost of FPOs channel works out less than the Non FPOs marketing channel. According to finding of this study Farmer Producer Organisations channel were found to be more relevant and profitable for farmers.

A Study on Economics of Marketing of Brinjal (Solanum melongena L.) in Nadia District of West Bengal

The study on marketing of brinjal conducted in Nadia District of West Bengal discerns that the marketing of brinjal in the study area is completely dominated by the intermediaries depriving farmers to get the remunerative prices for their products and consumers are also paying higher prices. Three dominant marketing channels through which more than 70% of the total production are disposed of have been selected for the present study. Price spread of the three marketing channels taken for the study are estimated to be Rs.675.5/q, Rs.1780.00/q and Rs. 2472.10/q for channel-I, II and III respectively in which the share of net marketing margin retained by the producers /intermediaries for their services 83.65, 67.07 and 62.32 per cent of the price spread in the same sequence., i.e. the amount of price spread increases with the increase in the length of the channel. The producer’s share in the consumer’s rupee are estimated to be 81.77, 62.37 and 54.41 per cent in the same sequence indicating that the channel-I is the most efficient compared to the remaining two channels and channel-II is more efficient than channel-III. Marketing efficiency measured by applying three available methods, namely, conventional, Shepherd’s and Acharya’s are recorded to be 6.12, 3.18, 2.65; 5.49, 1.66, 1.19 and 4.49, 1.74,1.20 for the corresponding three methods for all the three channel which reaffirm the previous observation based on producer’s share in consumer’s rupee. As an efficient marketing system is supposed to safeguard the interest of all involved, a combination of traditional and modern marketing networks equipped with forward and backward linkages may be helpful in protecting the interests of all the competing stakeholders in marketing process.