Question:

Farmers' share in consumers' rupee is least in marketing of .

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Compare how many processing stages each commodity passes through before reaching the final consumer.
  • Rice
  • Milk
  • Cotton
  • Gram
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The Correct Option is C

Solution and Explanation

Step 1: The farmer's share in the consumer's rupee depends on how long the marketing channel is and how much processing the raw product goes through before it reaches the buyer.
Step 2: Rice, milk and gram travel through fairly short channels with limited processing, so the producer keeps a large part of the price paid by the household.
Step 3: Cotton is different. It passes through ginning, spinning, weaving, dyeing and garment making before it becomes a piece of cloth. Every one of these stages adds a margin that never reaches the farmer, so the raw cotton grower ends up with the smallest share of the consumer's rupee among the four.
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