International Journal of Scientific Engineering and Research (IJSER) ISSN (Online): 2347-3878 Index Copernicus Value (2015): 56.67 | Impact Factor (2017): 5.156 Volume 6 Issue 9, September 2018 www.ijser.in Licensed Under Creative Commons Attribution CC BY Distribution Channels Used in Apple Distribution in Himachal Pradesh Dr. Kiran Chanda Assistant Professor, Department of Management, Himalayan Group of Professional Institute, Kala Amb Abstract: A fruit marketing agency may have the activities and its operations related to fruit procurement, packing, storage, transportation, processing and marketing of fresh fruits as well as the fruit products. Efficient marketing strategy especially for horticulture produce depends mainly on the decision on where, when, how much to market. In the process of marketing a product has to pass through a number of marketing agencies and make use of the services of several functionaries. The fruits and vegetables pass through different channels on their way to the ultimate consumers and the share of consumer’s money received by the producer depends upon the channel followed. The present research paper focuses on the different distribution channels adopted by the apple growers in Himachal Pradesh. Keywords: Horticulture, Apple, Himachal Pradesh, Problems, prospects 1. Introduction Himachal grow diverse varieties of fruits from tropical to temperate which help in the economic up-liftment of the rural economy by generating employment and revenue to rural population. Himachal Pradesh is bestowed endowed with plenty of natural resources with diverse agro-climatic conditions suitable for horticulture development. Shimla district has occupied a place of pride in the field of horticulture followed by Kullu and Kinnaur district. It is the biggest producer of quality fruits like Apple, Plum, Peach, and Pear etc. Horticulture products are transported from the area of production to marketing outlets. Because of their largely perishable nature, horticulture produce and products require special handling in transportation to retain their quality for a long time. A fruit marketing agency may have the activities and its operations related to fruit procurement, packing, storage, transportation, processing and marketing of fresh fruits as well as the fruit products. Efficient marketing strategy especially for horticulture produce depends mainly on the decision on where, when, how much to market. A modern marketing organization having diverse function may require sectoral division and separate management sub-units under an overall control of management. There are numbers of marketing channels used by orchardists. Marketing is basically the process of movement of goods from producers to consumers in the desired time, place and form. The sequence of agencies through which the produce thus passes is called the channel of its movement or the marketing channels. Concentration of fruit and vegetable production in specialized packets coupled with their consumption scattered all over the country, renders fruit marketing essentially a matter of skill. Vigilance is equally essential for reasons of the higher perishability of horticultural produce. A small mistake in the marketing decisions may lead to low revenue for the hard toiled produce. 2. Reviews Khair, S. M., Ahmed, M., Khan, E. (2008) in their study on “Margin and channels for shin kulu (Golden delicious) Apple produced in Pishin: A case study” reported that due to the lack of market information farmers’ losses their profit and are at the mercy of commission agent. So there is a need of proper marketing information system. Moreover, marketing margins need to be reduced so that farmers could get the maximum benefit of their produce. There is a wide range between producers and consumers price i.e. the marketing margin which is 76 percent and 58 percent for shin kullu apple in channel-1( Producers-pre harvest contractor- commission agents-wholesaler- retailer – consumer) and channel-2 ( producers- commission agents- wholesaler- retailer-consumers) respectively. They finally suggested that there is a lack of agricultural loan facilities, lack of packing materials near production, lack of marketing system. Shraff, S., Kajale, J. (2008) in their research paper entitled “Government intervention in horticulture development- A case of Maharashtra” reported that promotion of horticulture crops have not received any attention in India in terms of investment. The government of Maharashtra made special attempts to promote horticulture by providing subsidy to farmers through horticulture linked EGS (Employment Guarantee Scheme) programme. But the farmers face so many problems and challenges like numbers of intermediaries involved in the marketing of produce is very large that adds to the final cost of the produce which results in low share of farmers in its terminal price. The cooperation of farmers and organised retailing can save the interest of the farmers. These corporate units like Reliance, Godrej, ITC, Bharti Group etc, have entered in the market to capitalise on opportunities such as processing, marketing & export. Moreover, the government of India set up the National Horticulture Board for Development of Horticulture with thrust on post harvest management and marketing. Saxena, A., Hussain, M. and Singh, A. (2017) in their study on “Impect of amended APMC act on apple business in Himachal, India” reported that Indian agricultural marketing system is suffering from various problems like large number of middlemen, malpractices of traders, inadequate market information and insufficient funds etc. APMC control and regulate the selling at all regulated agricultural marketing yards. But there are lot of inefficiencies involved in APMC. But the amended APMC act prevents anticompetitive practices. It is found that now private players are allowed to procure apple from producers Paper ID: IJSER18179 32 of 36