Analysis of the market structure of the red chili supply chain in Karo Regency
Keywords:
Market Structure, Supply Chain, Red Chili, Karo RegencyAbstract
The study is important to know how control, over market changes prices and farmer well being. In an oligopsony structure a few traders control market access and information. That control weakens the bargaining position of the farmers. Weak farmer institutions and limited price information make the problem worse. This research examines the market structure. This research identifies price control practices. This research evaluates the impact of price control practices, on the farmer welfare. The method used is a method. The mixed method combines analysis that measures market concentration and price transmission. The mixed method also uses an approach that includes in‑depth interviews. Researchers collected data, from farmer surveys from trader surveys and from sources. The expected outputs are policy recommendations for an fair market system. The expected outputs also include publications. The aim is to strengthen farmers’ bargaining position. The aim is also to increase supply chain efficiency. The aim is also to support development. Empirical evidence suggests that the red chili market in Karo Regency demonstrates a significant level of buyer concentration within the trading segment of the supply chain. The four‑firm concentration ratio (CR4) reached 75.85 percent at the collector level. 83.16 Percent, at the wholesaler level. The four‑firm concentration ratio shows an oligopsony structure. The Herfindahl–Hirschman Index (HHI) exceeded 2,500 points. The Herfindahl–Hirschman Index shows a market. The marketing margin between consumer prices ranged from IDR 18,000 to 24,000, per kilogram. The marketing margin left the farmers with 34 to 38 percent of the retail price. The empirical indicators show that the price disparities, in the Karo red chili market are caused by the market structure not by the season. The empirical indicators also make the need for the market structure analysis.
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