Abstract:
This research aimed to explore the income creation and distribution along the value chain of finger
millets. The objectives were (1) to identify the structure of the value chain, (2) to find out the functions
and roles of value chain actors placed in different nodes, (3) to recognize the current income flow, and (4)
to determine the factors influencing the value creation and income generation in finger millet value chain.
Hambanthota district was selected as the research area and the total sample size was 150. Sample
technique was a purposive sampling technique and the interviewer administrated questionnaires were
used as a data collection tool. Mainly descriptive and the Pearson Chi-square analysis were used to the
analyses data. Processors who provide product base value addition and other actors provide service based
value additions. The most complex node was the middleman node which shows a network. Before
processing activities, actors are called middleman level 1 and after the processing, actors are called
middleman level 2. There is a significant positive relationship between market margins of the farmers and
the level II middlemen. Age, educational levels and the experiences about their professionals are the
causal factors of income generation and value addition in finger millet value chain nodes. Farmers and
middlemen experiences positive for profit margin. This research concluded that, finger millet value chain
structure is very complex and driven by the middleman actors.
