Role of farm infrastructure in agribusiness during a crisis: insights from rural Assam, India

Abstract

This study aimed to examine how far village farms and marketing infrastructures are responsible for agribusiness crises posed by a pandemic induced national lockdown through the lens of farming communities in rural Assam. Instrumental Variable Two Stages Least Square method was applied to determine the impacts of exiting farm infrastructure on crop damage, sales loss and their joint influence on farm income following a national emergency. The estimated results showed that loss in farm income was directly proportional to unsold quantities, the value of damaged crops and sale of crops at low prices by the sampled households. Limited access to storage and agro-processing facilities at the village level were considerably responsible for wastage and damage of perishable crops at the harvesting stage during the crisis period. Policies designed towards creation of rural marketing infrastructures such as storage and agro-processing units may serve as an alternative destination for harvested crops rather than excessively relying on the local market in an emergency situation. Steps towards regular access to Agricultural Produce Market Committee (APMC) Yards or Regulated Market Committee (RMC) Yards among rural farmers may also provide benefits for the farmers.