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1.Marketing costs are the actual expenses incurred in bringing goods and services from the producer to the consumers.
2. The marketing costs normally include;
handling charges at local points
transport and storage costs
handling charges by wholesaler and retailer
profit margins taken by different agencies.
3. Marketing margins:
(i) The absolute value of the total marketing margin varies from market to market, channel to channel and time to time.
ii) Commission: The charges are usually made in cash and vary from market to market. These charge were observed to be nil in the states of Assam, Kerala, Madhya Pradesh, Goa, Arunachal Pradesh.
iii) Taxes: Different taxes are charged in different markets such as toll tax, terminal tax, sales tax, octroi etc. These taxes leviable on paddy/rice differ from market to market in the same state as also from state to state. These taxes are usually payable by the seller.
iv) Miscellaneous charges: In addition, some other charges are also levied. These include handling, weighing, loading, unloading, cleaning, charity contribution in cash and kind, etc. These charges may be payable either by the seller or by the buyers.