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Linking Farms to Markets: Reducing Transaction Costs and Enhancing Bargaining Power

In: Transforming Food Systems for a Rising India

Author

Listed:
  • Prabhu Pingali

    (Cornell University)

  • Anaka Aiyar

    (Cornell University)

  • Mathew Abraham

    (Cornell University)

  • Andaleeb Rahman

    (Cornell University)

Abstract

Market access determines the income of agricultural households and incentivizes the cultivation of diverse crops. Markets in India are mostly unorganized with limited infrastructure limiting their ability to cater to quality requirements and specifications demanded by urban consumers. Therefore, parallel to traditional markets, direct linkages with farms and alternative markets based on electronic sales platforms, new commodity futures and warehousing systems are needed. In this chapter, we discuss the scope of small farms to effectively link to value chains and new marketing platforms. We show that reducing transaction costs, developing and improving market infrastructure and limiting the influence of intermediaries are critical. Also, having producer organizations rectify scale disadvantages will enable better participation of smallholders in different marketing arrangements.

Suggested Citation

  • Prabhu Pingali & Anaka Aiyar & Mathew Abraham & Andaleeb Rahman, 2019. "Linking Farms to Markets: Reducing Transaction Costs and Enhancing Bargaining Power," Palgrave Studies in Agricultural Economics and Food Policy, in: Transforming Food Systems for a Rising India, chapter 0, pages 193-214, Palgrave Macmillan.
    • Handle: RePEc:pal:psachp:978-3-030-14409-8_8
    DOI: 10.1007/978-3-030-14409-8_8
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    Cited by:

    1. Brighet Edward Makiluly & Emmanuel J. Munishi & Ibrahim Issa & Kirumirah Mubarack Hamidu, 2022. "Factors constraining the role of intermediaries in provisions of storage services for urban fresh fruits and vegetables supply chain in Dar es Salaam," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(4), pages 406-413, June.
    2. Yohana James Mgale & Yan Yunxian, 2020. "Marketing efficiency and determinants of marketing channel choice by rice farmers in rural Tanzania: Evidence from Mbeya region, Tanzania," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1239-1259, October.
    3. Kampmann, Willi & Kirui, Oliver Kiptoo, 2021. "Role of Farmers’ Organizations in Agricultural Transformation in Africa: Overview of Continental, Regional, and Selected National Level Organizations," Working Papers 309358, University of Bonn, Center for Development Research (ZEF).

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