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Impact of Market Reforms on Technology Adoption and Profitability: The Case of Tomato Farmers in India

Author

Listed:
  • Nirmal Ravi Kumar, Kotamraju

    (Ministry of Agriculture and Farmers’ Welfare, Government of India)

  • Chandra Babu, Suresh

    (International Food Policy Research Institute (IFPRI), USA)

  • Mohan Reddy Maligireddy, Jagan

    (College of Agriculture, Professor Jayashankar Telangana State Agricultural University (PJTSAU), India)

Abstract

Market reforms affect the development of agribusiness and remain contentious in many developing countries. This study contributes to the debate and the lack of evidence on the impact of marketing reforms on the welfare of farmers. It focused on the impact of direct marketing in tomato cultivating farmers with Super Markets (SMs) on the adoption of modern production technologies and the realization of net returns in India. Primary data was collected from 500 sample farmers and applied to the Seemingly Unrelated Regression (SUR) model to analyze the impact of SMs participation on the adoption of modern production technologies and the realization of net income. The findings revealed that SMs participation decisions, interactions with SMs personnel, land holding size and lucrative prices offered by SMs are influential factors in the use of modern inputs viz., organic manures, drip irrigation, micronutrients and for the realization of higher net income from tomato cultivation. Reduced transaction costs, assured marketing, the mitigation of both production and marketing risks, enhancing the commercial outlook of farmers, etc., are the other benefits due to market linkages of tomato farmers with corporate firms.

Suggested Citation

  • Nirmal Ravi Kumar, Kotamraju & Chandra Babu, Suresh & Mohan Reddy Maligireddy, Jagan, 2021. "Impact of Market Reforms on Technology Adoption and Profitability: The Case of Tomato Farmers in India," Asian Journal of Applied Economics/ Applied Economics Journal, Kasetsart University, Faculty of Economics, Center for Applied Economic Research, vol. 28(2), pages 1-20, December.
    • Handle: RePEc:ris:apecjn:0057
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    More about this item

    Keywords

    market reforms; direct market linkages; supermarkets; technology adoption; SUR model;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M38 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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