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Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India

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  • Roy, Devesh
  • Thorat, Amit

Abstract

Summary In spite of being the second largest horticultural producer in the world, India is a failed exporter mainly because of the inability to meet the food safety standards. Hence, successes in horticultural exports are rare. Here, we study one unique success story, Mahagrapes, a marketing partner to farmer cooperatives attributing its success to a combination of collective action and public private partnerships. Our results indicate that Mahagrapes farmers earn significantly higher income vis-à-vis their outside marketing option and smallholders face no bias in selection. Together with the farmer's ability to consistently meet standards, this implies that the model can be scaled up.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 10 (October)
Pages: 1874-1890

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:10:p:1874-1890

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: standards food safety exports;

References

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  1. Imbens, Guido W & Angrist, Joshua D, 1994. "Identification and Estimation of Local Average Treatment Effects," Econometrica, Econometric Society, vol. 62(2), pages 467-75, March.
  2. Prema-Chandra Athukorala & Sisira Jayasuriya, 2003. "Food Safety Issues, Trade and WTO Rules: A Developing Country Perspective," The World Economy, Wiley Blackwell, vol. 26(9), pages 1395-1416, 09.
  3. Abhijit Banerjee & Dilip Mookherjee & Kaivan Munshi & Debraj Ray, 2001. "Inequality, Control Rights, and Rent Seeking: Sugar Cooperatives in Maharashtra," Journal of Political Economy, University of Chicago Press, vol. 109(1), pages 138-190, February.
  4. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  5. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
  6. Umali-Deininger, Dina & Sur, Mona, 2006. "Food Safety in a Globalizing World: Opportunities and Challenges for India," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25746, International Association of Agricultural Economists.
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Citations

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Cited by:
  1. Sukhpal Singh, 2013. "Governance and upgrading in export grape global production networks in India," Brooks World Poverty Institute Working Paper Series ctg-2013-33, BWPI, The University of Manchester.
  2. Verena Bitzer & Pieter Glasbergen & Bas Arts, 2013. "Exploring the potential of intersectoral partnerships to improve the position of farmers in global agrifood chains: findings from the coffee sector in Peru," Agriculture and Human Values, Springer, vol. 30(1), pages 5-20, March.
  3. Bijman, Jos & Hu, Dinghuan, 2011. "The Rise of New Farmer Cooperatives in China; Evidence from Hubei Province," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114252, European Association of Agricultural Economists.
  4. Maxime Agbo & Damien Rousselière & Julien Salanié, 2013. "A Theory of Agricultural Marketing Cooperatives with Direct Selling," Working Papers 1331, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  5. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Discussion Papers 108551, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  6. Schipmann, Christin & Qaim, Matin, 2009. "Modern Supply Chains and Product Innovation: How Can Smallholder Farmers Benefit?," 2009 Conference, August 16-22, 2009, Beijing, China 51046, International Association of Agricultural Economists.
  7. Bodas Freitas, Isabel Maria & Iizuka, Michiko, 2012. "Openness to international markets and the diffusion of standards compliance in Latin America. A multi level analysis," Research Policy, Elsevier, vol. 41(1), pages 201-215.
  8. Neda Trifković, 2013. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," IFRO Working Paper 2013/20, University of Copenhagen, Department of Food and Resource Economics.
  9. Torero, Maximo & Viceisza, Angelino, 2011. "Potential collusion and trust: Evidence from a field experiment in Vietnam," IFPRI discussion papers 1100, International Food Policy Research Institute (IFPRI).
  10. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
  11. Birthal, Pratap Singh & Joshi, Pramod Kumar & Negi, Digvijay S. & Agarwal, Shaily, 2014. "Changing sources of growth in Indian agriculture: Implications for regional priorities for accelerating agricultural growth:," IFPRI discussion papers 1325, International Food Policy Research Institute (IFPRI).
  12. Gulati, Ashok, 2009. "Emerging Trends in Indian Agriculture: What Can We Learn from these?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(2).
  13. Christina Handschuch & Meike Wollni, 2013. "Traditional food crop marketing in Sub-Saharan Africa: Does gender matter?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 142, Courant Research Centre PEG.
  14. Fischer, Elisabeth & Qaim, Matin, 2011. "Smallholder Farmers and Collective Action: What Determines the Intensity of Participation?," Proceedings of the German Development Economics Conference, Berlin 2011 28, Verein für Socialpolitik, Research Committee Development Economics.

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