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The Long road to transformation of agricultural markets in India: Lessons from Karnataka

Author

Listed:
  • Nidhi Aggarwal

    (Indira Gandhi Institute of Development Research)

  • Sargam Jain

    (Indira Gandhi Institute of Development Research)

  • Sudha Narayanan

    (Indira Gandhi Institute of Development Research)

Abstract

This paper examines Karnataka's pioneering agricultural output marketing reforms with the twin goals of assessing the state and challenges of implementation and to glean lessons from Karnataka's experience for India's e-National Agricultural Market (e-NAM). Through a field study of ten mandis across the state, we find that while Karnataka has been consistently pushing through with reforms, in the context of deeply entrenched relationships between farmers, traders and com- mission agents, the challenges of deeper reforms are significant. We argue that Karnataka's experience suggests that agricultural market reform in India rests on three pillars - institutions that establish the rules of the game, incentives for agents to participate actively in the market and infrastructure to support the modernised trading platform. Unless reforms address all these three issues simultaneously, they are unlikely to succeed.

Suggested Citation

  • Nidhi Aggarwal & Sargam Jain & Sudha Narayanan, 2016. "The Long road to transformation of agricultural markets in India: Lessons from Karnataka," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2016-026, Indira Gandhi Institute of Development Research, Mumbai, India.
    • Handle: RePEc:ind:igiwpp:2016-026
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    Cited by:

    1. 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.
    2. Bisena, J & Kumar, R, 2018. "Agricultural marketing reforms and e-national agricultural market (e-NAM) in India: a review," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(2).
    3. Nidhi Aggarwal & Sudha Narayanan, 2017. "Impact of India's demonetization on domestic agricultural markets," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2017-023, Indira Gandhi Institute of Development Research, Mumbai, India.
    4. Sanjay Chaudhary & P. K. Suri, 2021. "Ranking the Factors Influencing e-Trading Usage in Agricultural Marketing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(3), pages 233-249, September.
    5. Sanjay Chaudhary & P. K. Suri, 2022. "Modelling the Enablers of e-Trading Adoption in Agricultural Marketing: A TISM-Based Analysis of eNAM," Vision, , vol. 26(1), pages 65-79, March.
    6. Pavithra, S & Gracy, CP & Saxena, R. & Patil, G.G., 2018. "Innovations in agricultural marketing: a case study of e-tendering system in Karnataka, India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(01).
    7. A. Amarender Reddy & Mehjabeen, 2019. "Electronic National Agricultural Markets, Impacts, Problems and Way Forward," IIM Kozhikode Society & Management Review, , vol. 8(2), pages 143-155, July.
    8. Khandagiri, Chandan & Kannan, Elumalai, . "Performance analysis of electronic national agricultural markets: some evidence from Odisha," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 35(2).

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    Keywords

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    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

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