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Distribution Efficiency and Marketing Margins for Subsidized Fertilizer in Kayangan Subdistrict, North Lombok Eka Agustiani; Suprianto; Putu Karismawan; Muhammad Alwi; Abdul Manan
Indonesian Journal of Education and Community Services Vol. 4 No. 2 (2024): Edisi Juli-Desember 2024
Publisher : Indonesian Publication Center

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Abstract

This study aims to analyze the efficiency of the distribution chain and marketing margin of subsidized fertilizers from distributors to farmers in Kayangan District, North Lombok Regency. The research used a quantitative descriptive approach with a case study method. Data were collected through structured interviews, observation, and documentation involving 9 fertilizer retail kiosks selected using purposive sampling. Data analysis was conducted using marketing margin analysis, price efficiency ratio at the retailer level compared to the government's Highest Retail Price (HET), and business efficiency (R/C ratio). The results show that the subsidized fertilizer distribution chain involves distributors, retail kiosks, and farmers, following the RDKK system and the government's Highest Retail Price (HET) regulation. The marketing margin is relatively low, ranging from IDR 68.2 to IDR 218.2 per kg. The average R/C ratio of 5.50 indicates that the fertilizer retail business is economically efficient and highly profitable. The price efficiency ratio at the retailer level shows that most kiosks sell at prices close to or in line with the government's HET, indicating a transparent margin structure. Overall, the subsidized fertilizer distribution chain in the study area can be considered efficient based on marketing margin, price transparency, and business efficiency indicators.