Assessing Market Efficiency and Structure in Punjab's Tomato Supply Chain: Insights from Acharya's Method and Gini Coefficient Analysis

Tomato is one of the most volatile horticultural commodities in India, frequently exposing farmers and consumers to extreme price fluctuations. This study examines the efficiency and structural characteristics of tomato markets in Punjab using Acharya's Marketing Efficiency Index and Gini Coefficient analysis. Primary data were collected from farmers and market intermediaries across four major tomato markets Ludhiana, Jalandhar, Amritsar, and Patiala selected on the basis of tomato arrivals during 2022. The analysis of the predominant farmer-wholesaler-retailer marketing channel revealed low levels of market efficiency, with efficiency indices ranging from 0.54 to 0.61 across the selected markets during 2022-23. The findings indicate that a substantial share of consumer expenditure is absorbed by intermediaries, resulting in farmers receiving only 31-34 percent of the final consumer price. Seasonal analysis further revealed pronounced price volatility, with prices reaching their peak during January-June and declining sharply during July-December. An inverse relationship between market arrivals and prices during 2018-2022 highlights the persistent challenge of oversupply-induced price crashes faced by tomato growers. The estimated Gini coefficient of 0.76 points to a highly concentrated market structure, suggesting the dominance of a limited number of market players and weak bargaining power among farmers. The study also observed that supply disruptions arising from adverse climatic conditions tend to strengthen the market influence of wholesalers, exacerbating vulnerabilities for both producers and consumers. These findings underscore the need for strategic interventions to improve market efficiency, reduce intermediary dominance, and stabilize producer prices. Strengthening market infrastructure, expanding processing and value-addition facilities, promoting farmer aggregation, and fostering public-private partnerships can play a crucial role in creating a more equitable and resilient tomato value chain in Punjab.