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Information, direct access to farmers, andrural market performance in central India

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  • Goyal, Aparajita

Abstract

This paper estimates the impact of a change in procurement strategy of a private buyer in the central Indian state of Madhya Pradesh. Beginning in October 2000, internet kiosks and warehouses were established that provide wholesale price information and an alternative marketing channel to soy farmers in the state. Using a new market-level dataset, the estimates suggest a significant increase in soy price after the introduction of kiosks, supporting the predictions of the theoretical model. Moreover, there is a robust increase in area under soy cultivation. The results point towards an improvement in the functioning of rural agricultural markets.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5315.

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Date of creation: 01 May 2010
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Handle: RePEc:wbk:wbrwps:5315

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Keywords: Markets and Market Access; E-Business; Agribusiness; Crops&Crop Management Systems; Access to Markets;

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  1. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213.
  2. Burgess, Robin & Pande, Rohini, 2004. "Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment," CEPR Discussion Papers 4211, C.E.P.R. Discussion Papers.
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  10. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 879-924, 08.
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Cited by:
  1. Jenny C. Aker & Marcel Fafchamps, 2013. "Mobile Phone Coverage and Producer Markets: Evidence from West Africa," CSAE Working Paper Series 2013-09, Centre for the Study of African Economies, University of Oxford.
  2. Beuermann, Diether & McKelvey, Christopher & Sotelo, Carlos, 2012. "The Effects of Mobile Phone Infrastructure: Evidence from Rural Peru," Working Papers 2012-012, Banco Central de Reserva del Perú.
  3. Brooks, Karen & Zorya, Sergiy & Gautam, Amy & Goyal, Aparajita, 2013. "Agriculture as a sector of opportunity for young people in Africa," Policy Research Working Paper Series 6473, The World Bank.
  4. Glendenning, Claire J. & Babu, Suresh & Asenso-Okyere, Kwadwo, 2010. "Review of agricultural extension in India: Are farmers' information needs being met?," IFPRI discussion papers 1048, International Food Policy Research Institute (IFPRI).
  5. Zanello, Giacomo & Shankar, Bhavani & Srinivasan, Chittur S., 2012. "Transaction costs, information technologies, and the choice of marketplace amongst farmers in northern Ghana," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134740, Agricultural Economics Society.
  6. Rosamaría Dasso & Fernando Fernandez, 2013. "The Effects of Electrification on Employment in Rural Peru," CEDLAS, Working Papers 0150, CEDLAS, Universidad Nacional de La Plata.
  7. Bernard, Tanguy & Torero, Maximo, 2011. "Randomizing the "Last Mile": A methodological note on using a voucher-based approach to assess the impact of infrastructure projects," IFPRI discussion papers 1078, International Food Policy Research Institute (IFPRI).
  8. Dammert, Ana C. & Galdo, Jose C. & Galdo, Virgilio, 2013. "Digital Labor-Market Intermediation and Job Expectations: Evidence from a Field Experiment," IZA Discussion Papers 7395, Institute for the Study of Labor (IZA).
  9. Wouter Zant, 2012. "How does Market Access affect Smallholder Behavior? The Case of Tobacco Marketing in Malawi," Tinbergen Institute Discussion Papers 12-088/V, Tinbergen Institute.
  10. Beuermann, Diether W., 2011. "Telecommunications Technologies, Agricultural Profitability, and Child Labor in Rural Peru," Working Papers 2011-002, Banco Central de Reserva del Perú.
  11. Dethier, Jean-Jacques & Effenberger, Alexandra, 2012. "Agriculture and development: A brief review of the literature," Economic Systems, Elsevier, vol. 36(2), pages 175-205.
  12. Mittal, Surabhi & Mehar, Mamta, 0. "How Mobile Phones Contribute to Growth of Small Farmers? Evidence from India," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 51.
  13. Canuto, Otaviano & Dutz, Mark & Reis, José Guilherme, 2010. "Technological Learning and Innovation: Climbing a Tall Ladder," World Bank - Economic Premise, The World Bank, issue 21, pages 1-8, July.
  14. Diether W. Beuermann, 2011. "Information and Communication Technologies, Agricultural Profitability, and Child Labor in Rural Peru," OVE Working Papers 0211, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  15. Minten, Bart & Vandeplas, Anneleen & Swinnen, Johan F.M., 2011. "The broken broker system?: Transacting on agricultural wholesale markets in India (Uttarakhand)," IFPRI discussion papers 1143, International Food Policy Research Institute (IFPRI).
  16. Kizito, Andrew M. & Donovan, Cynthia & Staatz, John M., 2012. "Impact of Agricultural Market Information Systems Activities on Market Performance in Mozambique," Food Security International Development Papers 152396, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  17. repec:dgr:uvatin:2012088 is not listed on IDEAS
  18. Treb Allen, 2012. "Information Frictions in Trade," 2012 Meeting Papers 125, Society for Economic Dynamics.
  19. Steinwender, Claudia, 2013. "Information Frictions and the Law of One Price: “When the States and the Kingdom became United”," CEPREMAP Working Papers (Docweb) 1314, CEPREMAP.
  20. Staatz, John M. & Kizito, Andrew M. & Weber, Michael T. & Dembele, Niama Nango, 2011. "Evaluating the Impact on Market Performance of Investments in Market Information Systems: Methodological Challenges," Staff Papers 108184, Michigan State University, Department of Agricultural, Food, and Resource Economics.

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