Factors Determining the Choice of Marketing Channels for Principal Crops of Punjab

Agriculture plays a vital role in Punjab’s economy, supporting farm households and contributing significantly to India’s food security. This study examines the factors determining the choice of marketing channels for principal crops in Punjab: wheat, moong, rapeseed & mustard, and cotton. The primary data from 320 farmers was collected by using multistage stratified random sampling. Further, logit regression model was used to determine the factors that affect the choice of marketing channel. The findings of the study indicate that 76.25 percent of farmers sell their crops through a single channel, with only 23.75 percent opting for diversified market strategies. The key factors positively influencing the diversification of markets include education, credit availed, larger size of landholdings, and higher production levels. Conversely, age and delayed payments deter marketing diversification. Some factors such as social group, market distance, and MSP awareness showed negligible influence. Thus, the results emphasize the need for timely payments, enhanced financial support, education, and training related to agriculture to encourage farmers’ diversification of markets. Improving the marketing infrastructure, increasing the availability of credit, and developing other outlets is essential for freeing farmers from the grip of traditional markets and for stable agricultural growth in Punjab.