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Commercialization of agriculture in the Himalayas


  • Rahut, Dil Bahadur
  • Velásquez, Castellanos Iván
  • Sahoo, Pravakar


Increased market integration and commercialization of traditional agriculture in the Himalayas is part of a development strategy towards growth and better standard of living. More than 97 percent households depend upon agricultural and allied activities for livelihood which constitutes 30 percent of the household income. Given the importance of commercialization of agriculture to improve the productivity, per capita income and thereby the standard of living in the Himalayas, we examine the factors affecting the commercialization of agriculture on the basis of primary survey data. The results reveal that the land size, gender of the household head, livestock assets, ethnicity, education and location are important determinants of commercialization. Although commercialization of agriculture is considered as stimulated private-sector activity, public policy is essential to facilitate driving forces viz., trade and market reforms, rural infrastructure, and the institutional framework for legal and contractual arrangements between farmers and processors.

Suggested Citation

  • Rahut, Dil Bahadur & Velásquez, Castellanos Iván & Sahoo, Pravakar, 2010. "Commercialization of agriculture in the Himalayas," IDE Discussion Papers 265, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  • Handle: RePEc:jet:dpaper:dpaper265

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    References listed on IDEAS

    1. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302.
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    3. Jayne, T. S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David & Benfica, Rui & Chapoto, Antony & Zulu, Ballard, 2003. "Smallholder income and land distribution in Africa: implications for poverty reduction strategies," Food Policy, Elsevier, vol. 28(3), pages 253-275, June.
    4. Haggblade, Steven & Hazell, Peter & Brown, James, 1989. "Farm-nonfarm linkages in rural sub-Saharan Africa," World Development, Elsevier, vol. 17(8), pages 1173-1201, August.
    5. Stephan J. Goetz, 1992. "A Selectivity Model of Household Food Marketing Behavior in Sub-Saharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 444-452.
    6. Ellis, Frank, 2000. "Rural Livelihoods and Diversity in Developing Countries," OUP Catalogue, Oxford University Press, number 9780198296966, June.
    7. Leavy, Jennifer & Colin, Poulton, 2007. "Commercialisations in Agriculture," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 16(1).
    8. von Braun, Joachim, 1995. "Agricultural commercialization: impacts on income and nutrition and implications for policy," Food Policy, Elsevier, vol. 20(3), pages 187-202, June.
    9. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    10. Strasberg, Paul J. & Jayne, Thomas S. & Yamano, Takashi & Nyoro, James K. & Karanja, Daniel David & Strauss, John, 1999. "Effects of Agricultural Commercialization on Food Crop Input Use and Productivity in Kenya," Food Security International Development Working Papers 54675, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Rahut, Dil Bahadur & Micevska, Maja B., 2007. "Rural Nonfarm Employment and Incomes in the Eastern Himalayas," Proceedings of the German Development Economics Conference, Göttingen 2007 22, Verein für Socialpolitik, Research Committee Development Economics.
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    Cited by:

    1. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    2. Momanyi, Denis, 2016. "Analysis of the Marketing Behavior of African Indigenous Leafy Vegetables Among Smallholder Farmers in Nyamira County, Kenya," Research Theses 243443, Collaborative Masters Program in Agricultural and Applied Economics.

    More about this item


    Agriculture; Agricultural policy; Rural societies; Market; Household; India; Himalaya; Commercialization; Rural; Poverty; Production;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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