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Do storage and structural factors determine agricultural commercialization in India

Author

Listed:
  • A. Ganesh Kumar

    (Indira Gandhi Institute of Development Research)

  • Varun Kumar Das

    (Indira Gandhi Institute of Development Research)

Abstract

This paper analyses the role of storage facility and structural factors in determining agricultural commercialization in India. Commercialization of agriculture represents an important aspect of farm market behaviour. Farmers commercialization decision may be represented by farmers decision to participate in market sale, degree of market participation, number of market transactions and diversity of market agency sale. Access to storage could significantly regulate post-harvest management and marketing decisions by farmers. It could prevent distress sale and enhance better commercialization practices by farm households. Apart from access to storage facilities, this study considers various other farm, household, and structural variables in affecting farmers crop sale outcomes. Results show that farm households with likely access to storage facility have higher probability to participate in market transaction, sell more number of crops, and are more likely to have higher number of market transactions. This shows that having access to storage facility is likely to raise agricultural commercialization of farmers in India. The findings also show that structural or location specific variables which are beyond the control of the farm and household could significantly affect farmers marketing decisions.

Suggested Citation

  • 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.
    • Handle: RePEc:ind:igiwpp:2020-004
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    File URL: http://www.igidr.ac.in/pdf/publication/WP-2020-004.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Commercialization; storage; sale ratio; agency sale; sale diversity; market participation; market transaction; structural factors;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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