IDEAS home Printed from https://ideas.repec.org/a/sae/soudev/v5y2010i1p113-136.html
   My bibliography  Save this article

Horticulture Wholesale Trade and Governance in India

Author

Listed:
  • Bart Minten

    (Senior Research Fellow International Food Policy Research Institute (IFPRI))

  • Anneleen Vandeplas

    (Doctoral Fellow of the Research Foundation—Flanders (FWO) LICOS—Centre for Institutions and Economic Performance and Department of Economics, K.U. Leuven)

  • Yashodhan Ghorpade

    (Former Research Analyst International Food Policy Research Institute (IFPRI))

  • Johan F.M. Swinnen

    (Development Economics and Director LICOS—Centre for Institutions and Economic Performance and Department of Economics, K.U. Leuven)

Abstract

In a detailed case study of traditional wholesale markets for vegetables in India (in the state of Uttarakhand), we find several important governance problems at horticulture wholesale markets: marketing regulations are ineffective, widespread confusion of roles exists between brokers and wholesalers and few services are being delivered in return for the money paid to brokers and wholesale market authorities. Licensing schemes and political muscle seem to be used to ensure that the system continues in its current form and that the development of closer vertical coordination, which is required in modern markets but generally bypasses brokers, is hindered.

Suggested Citation

  • Bart Minten & Anneleen Vandeplas & Yashodhan Ghorpade & Johan F.M. Swinnen, 2010. "Horticulture Wholesale Trade and Governance in India," Journal of South Asian Development, , vol. 5(1), pages 113-136, April.
  • Handle: RePEc:sae:soudev:v:5:y:2010:i:1:p:113-136
    DOI: 10.1177/097317411000500105
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/097317411000500105
    Download Restriction: no

    File URL: https://libkey.io/10.1177/097317411000500105?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. A. Banerji & J.V. Meenakshi, 2004. "Buyer Collusion and Efficiency of Government Intervention in Wheat Markets in Northern India: An Asymmetric Structural Auctions Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 236-253.
    2. Aparna Sawhney, 2005. "Quality Measures in Food Trade: The Indian Experience," The World Economy, Wiley Blackwell, vol. 28(3), pages 329-348, March.
    3. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
    4. David Orden & Donna Roberts, 2007. "Food regulation and trade under the WTO: ten years in perspective," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 103-118, December.
    5. Jaffee, Steven & Henson, Spencer, 2004. "Standards and agro-food exports from developing countries: rebalancing the debate," Policy Research Working Paper Series 3348, The World Bank.
    6. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    7. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    8. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," 2002 ASAE 3rd International Conference, October 18-20, Jaipur, India 294714, Asian Society of Agricultural Economists (ASAE).
    9. Reardon, Thomas & Barrett, Christopher B., 2000. "Agroindustrialization, globalization, and international development: An overview of issues, patterns, and determinants," Agricultural Economics, Blackwell, vol. 23(3), pages 195-205, September.
    10. Marcel Fafchamps & Bart Minten, 1999. "Relationships and traders in Madagascar," Journal of Development Studies, Taylor & Francis Journals, vol. 35(6), pages 1-35.
    11. Chang-Tai Hsieh & Enrico Moretti, 2003. "Can Free Entry Be Inefficient? Fixed Commissions and Social Waste in the Real Estate Industry," Journal of Political Economy, University of Chicago Press, vol. 111(5), pages 1076-1122, October.
    12. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
    13. Theodosios B. Palaskas & Barbara Harriss-White, 1996. "The identification of market exogeneity and market dominance by tests instead of assumption: An application to Indian material," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(1), pages 111-123.
    14. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," World Development, Elsevier, vol. 30(9), pages 1621-1638, September.
    15. Roberts Michael J & Key Nigel, 2005. "Losing Under Contract: Transaction-Cost Externalities and Spot Market Disintegration," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(2), pages 1-19, April.
    16. Laurian J. Unnevehr, 2007. "Food safety as a global public good," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 149-158, December.
    17. Thomas Reardon & Julio A. Berdegué, 2002. "The Rapid Rise of Supermarkets in Latin America: Challenges and Opportunities for Development," Development Policy Review, Overseas Development Institute, vol. 20(4), pages 371-388, September.
    18. Priya Deshingkar & Usha Kulkarni & Laxman Rao & Sreenivas Rao, 2003. "Changing Food Systems in India: Resourcesharing and Marketing Arrangements for Vegetable Production in Andhra Pradesh," Development Policy Review, Overseas Development Institute, vol. 21(5-6), pages 627-639, December.
    19. Dina Umali‐Deininger & Mona Sur, 2007. "Food safety in a globalizing world: opportunities and challenges for India," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 135-147, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kydd, Jonathon, 2015. "Ex-post evaluation study of IFPRI’s research on high-value agriculture, 1994–2010," Impact assessments 39, International Food Policy Research Institute (IFPRI).
    2. Rudra Bahadur SHRESTHA & Wen-Chi HUANG & Shriniwas GAUTAM & Thomas Gordon JOHNSON, 2016. "Efficiency of small scale vegetable farms: policy implications for the rural poverty reduction in Nepal," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(4), pages 181-195.
    3. Thomas Reardon & Lenis Saweda O. Liverpool-Tasie & Bart Minten, 2021. "Quiet Revolution by SMEs in the midstream of value chains in developing regions: wholesale markets, wholesalers, logistics, and processing," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1577-1594, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcel Fafchamps & Ruth Vargas Hill & Bart Minten, 2008. "Quality control in nonstaple food markets: evidence from India," Agricultural Economics, International Association of Agricultural Economists, vol. 38(3), pages 251-266, May.
    2. Minten, Bart & Reardon, Thomas & Vandeplas, Anneleen, 2009. "Linking urban consumers and rural farmers in India: A comparison of traditional and modern food supply chains," IFPRI discussion papers 883, International Food Policy Research Institute (IFPRI).
    3. 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.
    4. Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.
    5. Minten, Bart & Murshid, K.A.S. & Reardon, Thomas, 2013. "Food Quality Changes and Implications: Evidence from the Rice Value Chain of Bangladesh," World Development, Elsevier, vol. 42(C), pages 100-113.
    6. Nalini ARUMUGAM & Mohamed Arshad FATIMAH & Eddie F.C. CHIEW & Mohamed ZAINALABIDIN, 2010. "Supply chain analysis of fresh fruits and vegetables (FFV): Prospects of contract farming," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 56(9), pages 435-442.
    7. Andersson, Camilla I.M. & Kiria, Christine G. & Qaim, Matin & Rao, Elizaphan J.O., 2013. "Following up on smallholder farmers and supermarkets," GlobalFood Discussion Papers 158142, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    8. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    9. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.
    10. Minten, Bart & Murshid, K.A.S. & Reardon, Thomas, 2011. "The quiet revolution in agrifood value chains in Asia: The case of increasing quality in rice markets in Bangladesh," IFPRI discussion papers 1141, International Food Policy Research Institute (IFPRI).
    11. Villacis, Alexis H. & Kopp, Thomas & Mishra, Ashok K., 2023. "Government-Supported Marketing Channels Increase Incomes only for Producers of Local Staples: Evidence from Fruit and Vegetables Farmers in India," 2023 Annual Meeting, July 23-25, Washington D.C. 335470, Agricultural and Applied Economics Association.
    12. Sylvaine Lemeilleur, 2014. "The role of input vouchers in modernizing the fresh fruit and vegetable market in Turkey," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 477-487, July.
    13. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    14. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," GlobalFood Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    15. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    16. Adu-Gyamfi Poku & Regina Birner & Saurabh Gupta, 2018. "Making Contract Farming Arrangements Work in Africa’s Bioeconomy: Evidence from Cassava Outgrower Schemes in Ghana," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    17. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    18. Neda Trifković, 2014. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 949-961, July.
    19. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:soudev:v:5:y:2010:i:1:p:113-136. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.