International Journal of Horticulture, 2018, Vol.8, No.3, 16-28
27
Table 12 revealed that the major constraints faced by the traders are Demonetization. The demonetization of
Indian currency has resulted in poor circulation and hence it affected the business heavily and this constraint
stood in the first place among the traders with the score of around 70 in both the districts. The second important
constraint is found to be the Goods and Services Tax which is not imposed on the farm produce during the yester
years but today it had attracted on an average of 12 per cent tax. It is an impediment to the traders of new entrant
into the business. The tax holidays are must for this type of business to promote the trade of Moringa globally
especially the agribusiness.
Table 12 Marketing Constraints Faced by the Producer cum Traders
SI. No.
Constraints
Thoothukkudi District
Tiruppur District
Mean Score
Garrett’s
Mean Score
Garrett’s
01
Demonetization has resulted in Poor flow of Money
68.27
1
70.90
1
02
Higher Tax due to Goods and Services Act
62.50
2
62.55
3
03
Transportation Problems
46.63
6
66.48
2
04
Lack of Solar Drying Facility
61.93
3
55.45
4
05
Higher Margin to the Dealers
48.20
5
49.68
5
06
Lack of Storage Facilities in the Production Zone
61.10
4
48.26
6
07
Lack of Price Information
35.57
7
36.13
7
08
Indirect Threats fromGovernment Departments
32.43
8
34.63
8
Note: Primary Survey from Traders
The third major constraint was the lack of solar drying facility in the production zone. This was reiterated by the
leading exporters like SVM Exports of Thoothukkudi District. They opined that the Solar Drying is superior to
open drying because of the better quality, colour and hygiene of the Moringa leaves. Due to solar drying, the
Chlorophyll content is maintained to the recommended level of around 6.70 per cent and hence the solar drying
facility should be erected in major production and trading zone to maintain the quality.
Another important constraint is the demand of higher margin to the dealers and distributors of Moringa based
products. Though it is inevitable, large scale operation and maintenance of product quality alone could reduce the
margin due to consumer acceptance and demand among the consumers by pronouncing the brand of Moringa
products. Hence brand promotion becomes important in this context of growing business on Moringa.
Another constraint pronounced by the Traders with little hesitant and at the same time they stress the constraint
also. The constraint is
‘Indirect Threats from the Government Departments’
. In all the countries, the Government
supports the Farmer-Producer and the exporters of agribusiness by helping them to find easy ways of doing
export business. Whereas in India, the exporters of farm produce are facing multiple threats from various
departments.
The Government Organizations like FSSAI are demanding the exporters of farm produce to renew the business
every year with the Food Unit of FSSAI and the excess money other than the renewal charges become mandatory
and hence this has to be checked. Besides this, the private organic certification agency is also demanding money
in lakhs for getting organic certification in addition to the regular certification fee. These issues have to be
redressed by permitting the existing Government Departments to do the Organic Certification following the
USDA / EU standards and by appointing more number of Inspectors. Currently only one Inspector is available for
15 Districts. This had become a big constraint and hence the redressal mechanisms are to be coined by the
Government for promotion of Moringa Trade.
6 Conclusions and Policy Implications
The case firm is a registered agribusiness concern in the name of “
Miracle tree Life Science”
was established
during the year 2015. A partnership enterprise registered with appropriate authorities and has the validity of
registration up to September 2019. Though the head quarter of the company is based at Madurai, it extends its
tentacles to different parts of the state for raw material procurement, processing and value addition and capable of
