Marketing Efficiency (Acharya Method)
Definition
Marketing Efficiency (Acharya’s Method) measures the efficiency of an agricultural marketing system by comparing the price received by the producer with the total marketing costs and margins involved in moving the commodity from producer to consumer.
Formula
Marketing Efficiency (ME) = Producer’s Price ÷ (Total Marketing Cost + Total Marketing Margin)
Calculator
Higher value of ME indicates a more efficient marketing system.
Leave a Reply