A study was conducted to evaluate market structure, thereby evaluating the efficiency of marketing channels and to estimate the price spread between the producer-sellers and the final tracers. It was revealed from the study that there are mainly three different channels through which arecanut reaches the traders from the producers. The market structure had not discriminated the growers across the size groups in terms of the cost of marketing services. Development of co-operative marketing system has provided effective channel for sale of arecanut and has helped in creating a competitive environment.