Research on World Agricultural Economy

Price Spread, Farmer Share, and Marketing Channels in the Pigeon Pea Value Chain in Maharashtra State of India

Sachin Kadam

Gokhale Institute of Politics and Economics, Pune 411004, India

Dilip Kajale

Gokhale Institute of Politics and Economics, Pune 411004, India

Sushant Malik

Symbiosis Institute of International Business, Symbiosis International (Deemed University), Pune 411057, India

DOI: https://doi.org/10.36956/rwae.v7i3.2913

Received: 14 November 2025 | Revised: 23 December 2025 | Accepted: 6 January 2026 | Published Online: 20 July 2026

---

Abstract

Pigeon pea is one of the important crops in terms of area and production in Maharashtra, India, contributing about one-third of India's total pigeon pea production. It is also an important source of protein in Indian households. The present study focuses on a comprehensive analysis and mapping of the value chain of pigeon pea in Maharashtra. A multi-stage stratified sampling method was used in the study. Primary data was collected from 560 farmers and 149 other important stakeholders. The value chain mapping technique was used for visualisation and quantification. We found that the average cost of production was Rs. 3785 per quintal, and the benefit-cost ratio was 1.57, indicating economic viability. Five major marketing channels were identified. A majority of farmers (88.8%) sold their produce to commission agents at nearby government-regulated markets. The farmers' share in the consumer's price was between 65–74% across the channels. The price spread range was 35–55%, with the highest value addition (16–34%) occurring at the processor level. The lowest price spread (35%) was reported in a channel, which involves farmer-producer companies (FPC), and this channel not only gives farmers a higher share (74.16%) but also offers consumers a lower price. Our study is one of the few that compares FPC-led and traditional channels, reporting the quantification of benefits across the different marketing channels of pigeon pea. The policy recommendation is that the government should focus on post-harvest management and strengthening of FPCs, through partnering with private sector and non-governmental organisations.

Keywords: Pigeon Pea; Value Chain Analysis; Marketing Channel; Farmer Producer Companies; Price Spread; Farmer’s Share

---

References

[1] Sarkar, S., Panda, S., Yadav, K., et al., 2018. Pigeon pea (Cajanus cajan): An important food legume in the Indian scenario—A review. Legume Research. 43(5), 601–610. DOI: https://doi.org/10.18805/LR-4021

[2] Singh, A., Fromm, I., Jha, G., et al., 2020. Understanding pigeon pea (Cajanus cajan) production conditions, stakeholders’ preferences for varietal traits and their implications for breeding programmes in India. bioRxiv preprint. Available from: https://www.researchgate.net/publication/342063961_Understanding_pigeon_pea_Cajanus_cajan_production_conditions_stakeholders'_preferences_for_varietal_traits_and_their_implications_for_breeding_programmes_in_India

[3] Babu, S., Sakhare, P., Ahamed, B., 2017. Varietal survey for pigeon pea Phytophthora wilt in Kalaburgi District of Karnataka, India. International Journal of Current Microbiology and Applied Sciences. 6, 1831–1833. DOI: https://doi.org/10.20546/IJCMAS.2017.612.207

[4] Jorrín, B., Maluk, M., Atoliya, N., et al., 2021. Genomic diversity of pigeon pea (Cajanus cajan L. Millsp.) endosymbionts in India and selection of potential strains for use as agricultural inoculants. Frontiers in Plant Science. 12, 680981. DOI: https://doi.org/10.3389/fpls.2021.680981

[5] Government of India, 2002. Post-Harvest Profile of Red Gram. Government of India: Faridabad, India.

[6] Harshitha, B., Goudar, G., Krishnaraj, P., et al., 2020. Characterization of plant growth promoting rhizobial isolates for pigeon pea (Cajanus cajan [L.] Millsp.). International Journal of Current Microbiology and Applied Sciences. 9, 3776–3788. DOI: https://doi.org/10.20546/ijcmas.2020.907.442

[7] Sah, U., Singh, V., Kumar, H., et al., 2022. Value chain analysis of pigeon pea in Bundelkhand region of India. Journal of Food Legumes. 35(4), 274–282.

[8] Fatokimi, E.O., Tanimonure, V.A., 2021. Analysis of the current situation and future outlooks for pigeon pea (Cajanus cajan) production in Oyo State, Nigeria: A Markov chain model approach. Journal of Agriculture and Food Research. 6, 100218. DOI: https://doi.org/10.1016/j.jafr.2021.100218

[9] Government of India, 2024. Annual Report 2022–23. Directorate of Pulses Development, Ministry of Agriculture and Farmers Welfare: Bhopal, India. Available from: http://dpd.gov.in/Final%20%20Annual%20Report%20(2022-23)%20with%20Preface%20(As%20on%2020.02.2024).pdf

[10] Government of India, 2024. Indian Pulses Scenario 2022–23. Directorate of Pulses Development: Bhopal, India.

[11] Government of India, 2024. Trade statistics and analytics. Ministry of Commerce and Industry. Available from: https://www.dgft.gov.in/CP/?opt=trade-statistics (cited 24 September 2025).

[12] Government of India, 2023. Agriculture Statistics at a Glance 2022. Directorate of Economics and Statistics, Ministry of Agriculture and Farmers Welfare: New Delhi, India.

[13] Government of Maharashtra, 2024. Available from: krishi.maharashtra.gov.in/Site/Common/ViewGr.aspx?Doctype=01ce19af-d065-4817-ac1a-71c1c0f8874d?MenuID=2911 (cited 9 July 2025). (in Marathi)

[14] Sah, U., Verma, P., Pal, J., et al., 2024. Pulse value chains in India: Challenges and prospects—A review. Legume Research. 47(7), 1065–1072.

[15] Shalendra, 2012. Marketing of Pulses in India. CCS National Institute of Agricultural Marketing: Jaipur, India.

[16] Jose, S., Gupta, S., Prasad, M.K., et al., 2024. Pulses inflation in India: A study of Gram, Tur and Moong. Department of Economic and Policy Research: Mumbai, India.

[17] Kumar, S., Sharma, A., 2016. Agricultural Value Chains in India: Prospects and Challenges. CUTS Centre for International Trade, Economics and Environment: Jaipur, India.

[18] Porter, M.E., 1985. The Competitive Advantage: Creating and Sustaining Superior Performance. Free Press: New York, NY, USA.

[19] Kaplinsky, R., Morris, M., 2002. A Handbook for Value Chain Research. Institute of Development Studies: Brighton, UK.

[20] Hellin, J., Meijer, M., 2006. Guidelines for Value Chain Analysis. Food and Agriculture Organization of the United Nations: Rome, Italy.

[21] Zamora, E.A., 2016. Value chain analysis: A brief review. Asian Journal of Innovation and Policy. 5(2), 116–128.

[22] Bellu, L.G., Food and Agriculture Organization, 2013. Value Chain Analysis for Policy Making. FAO EASYPol Series No. 129. Food and Agriculture Organization of the United Nations: Rome, Italy.

[23] Pavithra, A.S., Singh, K.M., Ahmad, N., et al., 2018. Economic analysis of rice value chain in Bihar and Karnataka States of India. International Journal of Current Microbiology and Applied Sciences. 7(3), 2738–2747. DOI: https://doi.org/10.20546/ijcmas.2018.703.316

[24] Gilbert, C.L., 2006. Value Chain Analysis and Market Power in Commodity Processing with Application to the Cocoa and Coffee Sectors. Department of Economics Working Papers. University of Trento: Trento, Italy.

[25] Udhayan, N., Naika, A.D., Hiremath, G.M., 2023. Value chain analysis of wheat in North Karnataka, India. International Journal of Plant & Soil Science. 35(20), 974–979.

[26] Mohapatra, S., Ramadas, S., 2022. Value chain mapping and analysis. In Advances in Agricultural Extension Research. Indian Council of Agricultural Research: New Delhi, India. pp. 104–111.

[27] Reddy, A.A., 2013. Training Manual on Value Chain Analysis of Dryland Agricultural Commodities. International Crops Research Institute for the Semi-Arid Tropics: Patancheru, India.

[28] Ganguly, K., Gulati, A., 2022. Pulses value chain—Pigeon pea and gram. In: Gulati, A., Ganguly, K., Wardhan, H. (Eds.). Agricultural Value Chains in India. Springer: Singapore.

[29] Kumar, M., Singh, R., Kumar, K., 2021. Marketing efficiency of different marketing channels of mustard crop in Swai Madhopur District of Rajasthan. Economic Affairs. 66(1), 143–147. DOI: https://doi.org/10.46852/0424-2513.1.2021.18

[30] Government of India, 2013. The Companies Act, 2013. Government of India: New Delhi, India.

[31] Malik, S., Kajale, D., 2024. Empowering small and marginal farmers: Unveiling the potential and addressing obstacles of farmer producer organizations in India. Research on World Agricultural Economy. 5(1), 32–47. DOI: https://doi.org/10.36956/rwae.v5i1.994

[32] Abraham, M., Pingali, P., 2021. Shortage of pulses in India: Understanding how markets incentivize supply response. Journal of Agribusiness in Developing and Emerging Economies. 11(4), 411–434. DOI: https://doi.org/10.1108/JADEE-11-2017-0128

[33] Acharya, S.S., Agrawal, N.L., 2016. Agricultural Marketing in India. Oxford & IBH Publishing: New Delhi, India.

[34] Government of Maharashtra, 2022. Economic Survey of Maharashtra 2021–22. Directorate of Economics and Statistics: Mumbai, India.

[35] Government of India, 2021. Situation Assessment of Agricultural Households and Land and Livestock Holdings in Rural India, 2019. National Statistical Office: New Delhi, India.

[36] Government of India, 2021. Price Policy for Kharif Crops: The Marketing Season 2021–22. Commission for Agricultural Costs and Prices: New Delhi, India.

[37] Mane, Y.B., Kale, S.S., 2012. A study on cost–benefit analysis of tur (red gram) with reference to dry land in Solapur District. International Journal of Food and Nutritional Sciences. 11(11), 17072–17080.

[38] Kumar, R.R., Malarkodi, M., Uma, K., 2022. Price spread and marketing efficiency of green gram in Tamil Nadu, India. The Pharma Innovation Journal. 40(4), 71–76.

[39] Narasalagi, V., Ka, S., 2018. Analysis of producer's share in consumer's price in marketing of selected vegetables through different supply chains. International Journal of Innovative Research & Studies. 8(2), 243–250.

[40] Reserve Bank of India, 2024. Handbook of Statistics on the Indian Economy 2023–24. Reserve Bank of India: Mumbai, India.

[41] Jayaraman, A., 2025. Emerging shifts in the value chain of cotton and pulses in Cauvery Delta: Ecological and economic perspectives. National Academy Science Letters. DOI: https://doi.org/10.1007/s40009-025-01852-7

[42] Sood, R., Saha, S., Dhyani, S., 2025. Relationships between nature’s contributions to people, drivers of change, and landscape values in a biocultural landscape: The Himalayas. Journal for Nature Conservation. 87, 126988. DOI: https://doi.org/10.1016/j.jnc.2025.126988