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The paper attempts to identify the different marketing channels of tobacco and to study the marketing costs, margins of intermediaries and the price spread in various channels of marketing of sun-cured chewing tobacco in Dindigul district of Tamil Nadu in the year 1997-98. To study the price spread in the marketing of tobacco, census method was used to collect data from all the 54 tobacco traders in Dindigul, Vedasandur, Eriyodu, Oddanchattram and Thoppupatti. Maketing costs, margins and price spread were examined in the following three channels through which tobacco marketing is carried out in Dindigul district, viz., Channel I: Farmers-Traders-Consumers; Channel II: Farmers-Traders-RetailersConsumers and Channel III: Farmers-Wholesale Traders-Local Traders-RetailersConsumers. Out of the...