IDEAS home Printed from https://ideas.repec.org/a/taf/jdevst/v48y2012i7p864-886.html
   My bibliography  Save this article

Regulations, Brokers, and Interlinkages: The Institutional Organization of Wholesale Markets in India

Author

Listed:
  • Bart Minten
  • Anneleen Vandeplas
  • Johan Swinnen

Abstract

There is a vigorous debate on the liberalisation of heavily regulated agricultural markets in India. A crucial institutional characteristic is the role of state regulated brokers in wholesale markets. Relying on data from a unique survey in Uttarakhand, a state in North India, we find that regulations on margins are ineffective as most brokers charge rates that significantly exceed the regulated ones. We also find that a majority of farmers self-select into long-term relationships with brokers. These relationships allow some of the farmers to interlink credit and insurance markets to the agricultural output market. This interlinkage does however not appear to be an instrument for farmer exploitation (as it does not lead to worse inputs, high interest rates, or lower implicit output prices), but is seemingly an extra service by brokers as to establish farmer loyalty to them and thus to ensure future supplies.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:jdevst:v:48:y:2012:i:7:p:864-886
    DOI: 10.1080/00220388.2011.615919
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00220388.2011.615919
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00220388.2011.615919?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sharma, Manohar & Zeller, Manfred, 1998. "Rural finance and poverty alleviation," Food policy reports 8, International Food Policy Research Institute (IFPRI).
    2. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, 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. Guanglu Zeng & Chenggang Zhang & Sanxi Li & Hailin Sun, 2021. "The Dynamic Impact of Agricultural Fiscal Expenditures and Gross Agricultural Output on Poverty Reduction: A VAR Model Analysis," Sustainability, MDPI, vol. 13(11), pages 1-13, May.

    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. repec:lic:licosd:28811 is not listed on IDEAS
    2. Sanktjohanser, Anna & Hörner, Johannes, 2022. "Too Much of A Good Thing?," TSE Working Papers 22-1327, Toulouse School of Economics (TSE).
    3. Shilpi, Forhad & Umali-Deininger, Dina, 2007. "Where to sell ? market facilities and agricultural marketing," Policy Research Working Paper Series 4455, The World Bank.
    4. Jenna Burrell, 2014. "Modernity in material form? Mobile phones in the careers of Ghanaian market women," Review of African Political Economy, Taylor & Francis Journals, vol. 41(142), pages 579-593, October.
    5. Fletschner, Diana K., 2000. "Enhancing Rural Women'S Access To Capital: Why It Is Important And How It Can Be Done. The Case Of Colombia," Staff Papers 12640, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    6. Ayala-Cantu, Luciano & Morando, Bruno, 2020. "Rental markets, gender, and land certificates: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    7. Michael Danquah & Abdul Malik Iddrisu & Peter Quartey & Williams Ohemeng & Alfred Barimah, 2021. "Rural financial intermediation and poverty reduction in Ghana: A micro‐level analysis," Poverty & Public Policy, John Wiley & Sons, vol. 13(4), pages 316-334, December.
    8. Florian Léon, 2022. "The elusive quest for high-growth firms in Africa: when other metrics of performance say nothing," Small Business Economics, Springer, vol. 58(1), pages 225-246, January.
    9. Sanchez-Pages Santiago & Straub Stéphane, 2010. "The Emergence of Institutions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-38, September.
    10. Alvaro Aguirre, 2017. "Contracting Institutions and Economic Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 24, pages 192-217, March.
    11. Henk-Jan Brinkman & Cullen S. Hendrix, 2010. "Food Insecurity and Conflict," World Bank Publications - Reports 27510, The World Bank Group.
    12. Sommarat Chantarat & Christopher Barrett, 2012. "Social network capital, economic mobility and poverty traps," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 299-342, September.
    13. van Tilburg, Aad & Trienekens, Jacques H. & Ruben, Ruerd & van Boekel, Martinus A.J.S., 2007. "Governance for quality management in smallholder-based tropical food chains," 106th Seminar, October 25-27, 2007, Montpellier, France 7932, European Association of Agricultural Economists.
    14. Geoffrey Schneider, 2008. "Comparative Institutional Advantage and the Appropriate Development Model for Sub-Saharan Africa," Forum for Social Economics, Taylor & Francis Journals, vol. 37(2), pages 115-124, January.
    15. Sebastian Kunte & Meike Wollni & Claudia Keser, 2017. "Making it personal: breach and private ordering in a contract farming experiment," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 44(1), pages 121-148.
    16. Adjognon, Serge G. & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas A., 2017. "Agricultural input credit in Sub-Saharan Africa: Telling myth from facts," Food Policy, Elsevier, vol. 67(C), pages 93-105.
    17. Maru, Yiheyis & Sparrow, Ashley & Stirzaker, Richard & Davies, Jocelyn, 2018. "Integrated agricultural research for development (IAR4D) from a theory of change perspective," Agricultural Systems, Elsevier, vol. 165(C), pages 310-320.
    18. Felkner, John S. & Lee, Hyun & Shaikh, Sabina & Kolata, Alan & Binford, Michael, 2022. "The interrelated impacts of credit access, market access and forest proximity on livelihood strategies in Cambodia," World Development, Elsevier, vol. 155(C).
    19. 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.
    20. 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.

    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:taf:jdevst:v:48:y:2012:i:7:p:864-886. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/FJDS20 .

    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.