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Where to sell ? market facilities and agricultural marketing

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  • Shilpi, Forhad
  • Umali-Deininger, Dina

Abstract

This paper analyzes the effect of facilities and infrastructure available at the market place on a farmer's decision to sell at the market using a comprehensive survey of farmers, markets and villages conducted in Tamil Nadu, India in 2005. The econometric estimation shows that the likelihood of sales at the market increases significantly with an improvement in market facilities and a decrease in travel time from the village to the market. The results suggest that wealth reduces a farmer's cost of accessing market facilities more than it increases her/his opportunity cost of leisure. The wealthy farmers are able to capture a disproportionate share of the benefits of facilities available at congested markets. The policy simulation, however, shows that the marginal benefits from an improvement in market facilities will favor poorer farmers in the context of India.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4455.

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Date of creation: 01 Dec 2007
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Handle: RePEc:wbk:wbrwps:4455

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Keywords: Markets and Market Access; Transport Economics Policy&Planning; Debt Markets; Access to Markets; Housing&Human Habitats;

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References

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Citations

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Cited by:
  1. Katsushi Imai & Raghav Gaiha & Ganesh Thapa, 2008. "Supply response to changes in agricultural commodity prices in Asian countries," The School of Economics Discussion Paper Series, Economics, The University of Manchester 0808, Economics, The University of Manchester.
  2. Raghav Gaiha & Nidhi Kaicker & Katsushi S. Imai & Ganesh Thapa, 2012. "Agriculture-Nutrition Pathway in India," Discussion Paper Series DP2012-16, Research Institute for Economics & Business Administration, Kobe University.
  3. Ganesh Thapa & Raghav Gaiha & Katsushi S. Imai & Varsha S. Kulkarni, 2009. "Soaring Food Prices: A Threat or Opportunity in Asia?," Brooks World Poverty Institute Working Paper Series 6909, BWPI, The University of Manchester.

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