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Market facilities and agricultural marketing: evidence from Tamil Nadu, India

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  • Forhad Shilpi
  • Dina Umali‐Deininger

Abstract

This article analyzes the effect of facilities and infrastructure available at the marketplace on a farmer's decision to sell at the market. 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 policy simulation indicates that the marginal benefits from an improvement in market facility will favor the poorer farmers in the context of India.

Suggested Citation

  • Forhad Shilpi & Dina Umali‐Deininger, 2008. "Market facilities and agricultural marketing: evidence from Tamil Nadu, India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 281-294, November.
    • Handle: RePEc:bla:agecon:v:39:y:2008:i:3:p:281-294
    DOI: 10.1111/j.1574-0862.2008.00333.x
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    1. Minten, Bart & Reardon, Thomas & Singh, K.M. & Sutradhar, Rajib, 2010. "The benefit of cold storages: Evidence from Bihar," MPRA Paper 54345, University Library of Munich, Germany, revised 14 Dec 2010.
    2. Babu, Suresh Chandra & Shishodia, Mahika, 2017. "Agribusiness competitiveness: Applying analytics, typology, and measurements to Africa," IFPRI discussion papers 1648, International Food Policy Research Institute (IFPRI).
    3. Mignouna, D.B. & Abdoulaye, T. & Alene, A. & Akinola, A.A. & Manyong, V.M., 2015. "Drivers of Market Participation Decisions among Small-scale Farmers in Yam Growing Areas of Nigeria and Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 230219, International Association of Agricultural Economists.
    4. Bart Minten & Anneleen Vandeplas & Johan Swinnen, 2011. "Regulations, Brokers, and Interlinkages: The Institutional Organization of Wholesale Markets in India," Journal of Development Studies, Taylor & Francis Journals, vol. 48(7), pages 864-886, May.
    5. Otieno, David Jakinda & Hubbard, Lionel J. & Ruto, Eric, 2012. "Determinants of technical efficiency in beef cattle production in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125853, International Association of Agricultural Economists.
    6. Garbero, A. & Songsermsawas, T., 2018. "IFAD RESEARCH SERIES 31 - Impact of modern irrigation on household production and welfare outcomes: evidence from the participatory small-scale irrigation development programme (PASIDP) project in Eth," IFAD Research Series 280080, International Fund for Agricultural Development (IFAD).
    7. Melkani, Aakanksha & Mason, Nicole & Mather, David & Chisanga, Brian & Jayne, Thom, 2021. "Smallholder Market Participation and Choice of Marketing Channel in the Presence of Liquidity Constraints: Evidence from Zambian Maize Markets," 2021 Conference, August 17-31, 2021, Virtual 315273, International Association of Agricultural Economists.
    8. Hiroyuki Takeshima & Futoshi Yamauchi & Hyacinth O. Edeh & Manuel A. Hernandez, 2023. "Solar‐powered cold‐storage and agrifood market modernization in Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 54(2), pages 234-255, March.
    9. Thapa, Ganesh & Gaiha, Raghav Gaiha, 2012. "Food Security in Asia and the Pacific: The Role of Smallholders," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 9(1), pages 1-37, June.
    10. Kiprotich Sigei, Geoffrey, 2014. "Determinants of Market Participation Among Small-Scale Pineapple Farmers in Kericho County, Kenya," Research Theses 243452, Collaborative Masters Program in Agricultural and Applied Economics.
    11. Pagare, Dewang & Biswas, Indranil & Agrahari, Amit & Ghosh, Sriparna, 2023. "A small farmer’s market choice in the presence of multiple markets: The Indian case," European Journal of Operational Research, Elsevier, vol. 311(2), pages 739-753.
    12. repec:ner:leuven:urn:hdl:123456789/319565 is not listed on IDEAS
    13. Giacomo Zanello & Chittur S. Srinivasan & Bhavani Shankar, 2014. "Transaction Costs, Information Technologies, and the Choice of Marketplace among Farmers in Northern Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1226-1239, September.
    14. Sigei, Geoffrey & Bett, Hillary & Kibet, Lawrence, 2014. "Determinants of Market Participation among Small-scale Pineapple Farmers in Kericho County, Kenya," MPRA Paper 56149, University Library of Munich, Germany.
    15. Chandra Sekhara Rao Nuthalapati & Yogesh Bhatt & Susanto K Beero, 2020. "Is the Electronic Market the Way Forward to Overcome Market Failures?," IEG Working Papers 387, Institute of Economic Growth.
    16. Fresenbet Zeleke & Girma T. Kassie & Jema Haji & Belaineh Legesse, 2021. "Would Market Sheds Improve Market Participation and Earnings of Small Ruminant Keepers? Evidence from Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 470-485, June.
    17. Reardon, Thomas & Minten, Bart, 2011. "The quiet revolution in India's food supply chains:," IFPRI discussion papers 1115, International Food Policy Research Institute (IFPRI).
    18. Minten, Bart & Reardon, Thomas & Singh, K.M. & Sutradhar, Rajib, 2011. "The potato value chain in Bihar: An assessment and policy implications," MPRA Paper 54350, University Library of Munich, Germany, revised 14 Jan 2011.
    19. A. Ganesh Kumar & Varun Kumar Das, 2020. "Do storage and structural factors determine agricultural commercialization in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2020-004, Indira Gandhi Institute of Development Research, Mumbai, India.
    20. Minten, Bart & Reardon, Thomas & Singh, K.M. & Sutradhar, Rajib, 2012. "The New and Changing Roles of Cold Storages in the Potato Supply Chain in Bihar," MPRA Paper 61109, University Library of Munich, Germany, revised 14 Sep 2014.
    21. Ishaq, Mazhir Nadeem & Xia, Li Cui & Rasheed, Rukhsana & Abdullah, Muhammad, 2017. "Market Decision Preferences Of Dairy Farmers Towards Traditional And Modern Channels Of Milk Marketing: An Evidence From Punjab Province Of Pakistan," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 5(3), July.

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