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Commercialization, diversification and structural determinants of farmers' income in India

Author

Listed:
  • Varun Kumar Das

    (Indira Gandhi Institute of Development Research)

  • A. Ganesh-Kumar

    (Indira Gandhi Institute of Development Research)

Abstract

This paper examines the effect commercialization (sale ratio, market transaction, co-operative sale), and diversification (crop, animal husbandry, and non-farm diversification) may have on farmers' income. In investigating so, this paper takes into account the structural factors which could also affect farmers' income. The results show that increasing diversification (crop and non-farm diversification), and increasing commercialization in terms of ratio of crop sold, number of transactions that farmers undertake in crop and animal husbandry markets, and selling of crops to mandis, co-operative and government agency, could improve farmers' income. These findings substantiates the policy suggestions made by Dalwai Committee Report 2018 with regard to commercialization and diversification as important policy instruments for raising of farmers' income.

Suggested Citation

  • Varun Kumar Das & A. Ganesh-Kumar, 2019. "Commercialization, diversification and structural determinants of farmers' income in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2019-042, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2019-042
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2019-042.pdf
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    References listed on IDEAS

    as
    1. Marcel Fafchamps & Ruth Vargas Hill & Bart Minten, 2008. "Quality control in nonstaple food markets: evidence from India," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 251-266, May.
    2. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    3. Aggarwal, Shilpa, 2018. "Do rural roads create pathways out of poverty? Evidence from India," Journal of Development Economics, Elsevier, vol. 133(C), pages 375-395.
    4. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
    5. Sarthak Gaurav & Srijit Mishra, 2015. "Farm Size and Returns to Cultivation in India: Revisiting an Old Debate," Oxford Development Studies, Taylor & Francis Journals, vol. 43(2), pages 165-193, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Commercialization; market transaction; diversification; farmers' income;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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