Motivating and De-Motivating Factors towards Marketing of Rice for the Rice Marketing Channel Members in Pakistan

Abstract

From the production of rice at the rice fields to the final consumers, the rice moves from different marketing channels. This study aims to identify those factors which motivate and de-motivate the rice marketing channels members towards rice marketing. For this study the data were collected from 120 rice farmers, 45 rice commission agents, 45 rice millers and 45 rice traders from three districts of Punjab province in Pakistan. A structured questionnaire was used to collect the data from the respondents. OLS regression was applied using SPSS. The results of the study revealed different motivating and de-motivating factors for different marketing channel members. For the rice growing farmers, the motivating factors towards rice marketing were found to be cash payment at the spot, selling paddy at the farm gate, high demand due to exportable item, better results as compare to other crops and rice as the status symbol crop. The significant de-motivating factors for rice growers were found to be difficulties due to transportation issues, shortage of water for rice cultivation and low yield per acre. The significant motivating factors for commission agents were found to be less risk because of the working on rice mills payroll, profitable business despite the lack of education and financing by the rice millers. The significant de-motivating factors for commission agents were found to be issues in storage facilities, rising transportation cost and delay in payments by the rice millers. The significant motivating factors for rice millers were found to be growing demand of branded rice and satisfactory profit margins while significant de-motivating factors were found to be seasonal nature of business, high fixed cost, increasing cost due to alternative power usage and labor cost and mixing of different verities. The significant motivating factors for rice traders were found to be whole year running business, good profit margin and growing demand of branded rice while high taxes and increasing transportation cost were found to be significant de-motivating factors for rice traders.

Keywords: Rice, Marketing, Marketing channels, motivating factors, De-motivating factors