India is the largest producer of banana in the world, accounting for 20.08% of the world production (15.9 million tons). Banana farming has become an important source of income for millions of rural families and provides employment for more than a million. The present study was undertaken to understand the value chain of banana sector in western Tamil Nadu. Cost, returns, post-harvest losses, price spread and marketing efficiency indices were worked out and discussed for different varieties of banana—Nendran, Poovan, Kathali and Robusta. The total cost of cultivation per hectare for these varieties ranged between 86,624.62 and 113,596.18. The net income realized ranged between 74,975.38 and 101,016.70 per hectare. The marketing efficiency for Nendran (2.4) was higher in Channel 1, and for the other varieties, the efficiency was higher in Channel 2—Poovan (1.89), Kathali (1.97) and Robusta (2.77). Thus, the analysis implied the following: to prevent the post-harvest loss there is need for training in post-harvest handling of fruit bunches; to improve the marketing efficiency, the growers should sell their produce directly to the wholesaler or tie up with the processor or retailer wherever feasible; and farmers must have the latest market knowledge, for taking better sales decision.

Banana is reported to be grown in 130 countries with a total production of 79 million tons. The 10 major banana producing countries accounted for more than 75% of the total banana production in 2007. Furthermore, India, China, Philippines, Brazil and Ecuador alone accounted for more than 60% of total world banana production. The four leading banana exporting countries in 2006 (Ecuador, Costa Rica, Philippines and Colombia) accounted for 64% of world exports, with Ecuador alone providing more than 30% of global banana exports.

India is the largest producer of banana in the world, accounting for 20.08% of world production of 15.9 million tons. Banana is the largely produced, and maximum consumed fruit amongst all the fruits cultivated in India. The important banana growing states are Maharashtra, Tamil Nadu, Andhra Pradesh, Kerala, Karnataka, Bihar and Gujarat. Banana is known as the ‘common man’s fruit’. The present study was undertaken to understand the value chain of banana sector in western Tamil Nadu, with the following specific objectives:

• To examine the banana cultivation practices and its economics;
• To examine the marketing practices, cost and price realization in banana.

Supply Chain Management Journal, Retail Analytics Using SAS, Analytical Processes, Retail Industry, Statistical Techniques, Product Inventory, Customer Satisfaction, Market Segmentation, Marketing Programs, Marketing Mix Models, Econometric Models, Inventory Management System, Marketing Campaigns, SAS Data Mining Software.