Farmers’ choice of market channels and producer prices in India: Role of transportation and communication networks

Negi, Digvijay S.; Birthal, Pratap S.; Roy, Devesh; Khan, Tajuddin

doi:10.1016/j.foodpol.2018.10.008

Cited by 69 publications

(71 citation statements)

References 16 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The availability of rural infrastructure, including irrigation, transportation, processing, storage and communications, was noted as a facilitating condition in 23% of the studies. In addition to easing the provision of complementary services, access to transportation (road infrastructure) enables farmers to gain better price terms from both informal and formal market channels 29,30 , and cold storage infrastructure, which reduces food wastage, has been found to increase producers' sales and generate higher prices in the off season 17,31,32 .…”

Section: Why Is This Methods So Important?mentioning

confidence: 99%

A scoping review of market links between value chain actors and small-scale producers in developing regions

et al. 2020

View full text Add to dashboard Cite

Sustainable Development Goal 2 aims to end hunger, achieve food and nutrition security and promote sustainable agriculture by 2030. This requires that small-scale producers be included in, and benefit from, the rapid growth and transformation under way in food systems. Small-scale producers interact with various actors when they link with markets, including product traders, logistics firms, processors and retailers. The literature has explored primarily how large firms interact with farmers through formal contracts and resource provision arrangements. Although important, contracts constitute a very small share of smallholder market interactions. There has been little exploration of whether non-contract interactions between small farmers and both small- and large-scale value chain actors have affected small farmers’ livelihoods. This scoping review covers 202 studies on that topic. We find that non-contract interactions, de facto mostly with small and medium enterprises, benefit small-scale producers via similar mechanisms that the literature has previously credited to large firms. Small and medium enterprises, not just large enterprises, address idiosyncratic market failures and asset shortfalls of small-scale producers by providing them, through informal arrangements, with complementary services such as input provision, credit, information and logistics. Providing these services directly supports Sustainable Development Goal 2 by improving farmer welfare through technology adoption and greater productivity.

show abstract

Section: Why Is This Methods So Important?mentioning

confidence: 99%

A scoping review of market links between value chain actors and small-scale producers in developing regions

et al. 2020

View full text Add to dashboard Cite

show abstract

“…This emphasizes the reliability of the information source and it may take considerable time in searching for reliable information because it is sometimes easy for some households to find such information, while it could be difficult for others. It is also argued that trustworthy information will help farmers select the appropriate outlet and have enough information to deal with a better price (Negi et al, 2018). The hypothesis is that when knowing the market price and having reliable market information, farmers are likely to deal with traders who come to buy farmers' produce directly at the farm gate and as the exchange is more flexible compared to deal with a cooperative.…”

Section: Variables Definition and Descriptive Analysismentioning

confidence: 99%

Transaction cost, price risk perspective and marketing channel decision of small-scale chili farmers in Tra Vinh Province, Vietnam

Hung

Khải

2020

Asian Journal of Agriculture and Rural Development

View full text Add to dashboard Cite

The aim of this study is to determine the marketing channel and the factors affecting farmer's selection of a distribution channel of chili produced in Tra Vinh province, Vietnam. With primary data of 193 chili farmers, the study based on the theory of transaction cost economics to estimate the determinants of marketing channels using the approach of the Probit model. The results showed that the marketing choice decision of chili farmers was affected by transaction costs, price risk attitude and farmers' characteristics. Cooperatives mainly used seedling supply as an interlocked exchange to encourage farmers to remain in the cooperative channel. The finding also revealed that cooperative channel was not just the preferred channel when farmers were confronted with selling pressure due to the perishable nature of the chili, but also was a safe channel for more risk-averse farmers. Contribution/ Originality The choice of marketing channel is one of the main decisions for producers because different channels are characterized by certain levels of profitability and cost. The study aims to identify factors affecting the chili farmer's selection of a distribution channel. The results of this study could provide policymakers useful information to master chili farmers' distribution channels.

show abstract

“…Another line of research focuses on the relationship between transaction costs and contract choices. Someone considers the socioeconomic characteristics of sellers and buyers, economic and technical characteristics of the commodity, as well as the institutional environment (Negi, Birthal, Roy, & Khan, 2018). The author develops a non-linear programming model for individual firms' supply chain decisions and provides a framework for the application of the TCE to analyze policy interventions in developing markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Transaction Costs and Farm-to-Market Linkages in China: Empirical Evidence from Apple Producers

Wang¹,

Han²,

Qi³

et al. 2020

JAS

View full text Add to dashboard Cite

Using field surgveyed data from two apple production belts in China, this study estimates the impact of transaction costs on smallholders’ market participation and integration. The analysis is based on an innovative measurement of the transaction costs and a disaggregated analysis of sales, information, negotiation, and monitoring costs. The results reveal that farmers’ market participation levels are mainly determined by the proportional transaction costs and price, while their market integration depends on the fixed transaction costs and price. This suggests that, to lower the transaction costs and enable specialization and market participation, it is necessary to invest in and construct adequate farming infrastructure, update the rural information system, improve the structure of farmer households, and subsidize specialized rural cooperative organizations.

show abstract

Farmers’ choice of market channels and producer prices in India: Role of transportation and communication networks

Cited by 69 publications

References 16 publications

A scoping review of market links between value chain actors and small-scale producers in developing regions

A scoping review of market links between value chain actors and small-scale producers in developing regions

Transaction cost, price risk perspective and marketing channel decision of small-scale chili farmers in Tra Vinh Province, Vietnam

Transaction Costs and Farm-to-Market Linkages in China: Empirical Evidence from Apple Producers

Contact Info

Product

Resources

About