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Where to sell ? market facilities and agricultural marketing

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  • Shilpi, Forhad
  • Umali-Deininger, Dina

Abstract

This paper analyzes the effect of facilities and infrastructure available at the market place on a farmer's decision to sell at the market using a comprehensive survey of farmers, markets and villages conducted in Tamil Nadu, India in 2005. The econometric estimation shows that the likelihood of sales at the market increases significantly with an improvement in market facilities and a decrease in travel time from the village to the market. The results suggest that wealth reduces a farmer's cost of accessing market facilities more than it increases her/his opportunity cost of leisure. The wealthy farmers are able to capture a disproportionate share of the benefits of facilities available at congested markets. The policy simulation, however, shows that the marginal benefits from an improvement in market facilities will favor poorer farmers in the context of India.

Suggested Citation

  • Shilpi, Forhad & Umali-Deininger, Dina, 2007. "Where to sell ? market facilities and agricultural marketing," Policy Research Working Paper Series 4455, The World Bank.
    • Handle: RePEc:wbk:wbrwps:4455
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    2. Raghav Gaiha & Nidhi Kaicker & Katsushi S. Imai & Ganesh Thapa, 2012. "Agriculture-Nutrition Pathway in India," Discussion Paper Series DP2012-16, Research Institute for Economics & Business Administration, Kobe University.
    3. Ali, Jabir & Kumar, Sushil, 2011. "Information and communication technologies (ICTs) and farmers’ decision-making across the agricultural supply chain," International Journal of Information Management, Elsevier, vol. 31(2), pages 149-159.
    4. Ganesh Thapa & Raghav Gaiha & Katsushi S. Imai & Varsha S. Kulkarni, 2009. "Soaring Food Prices: A Threat or Opportunity in Asia?," Global Development Institute Working Paper Series 6909, GDI, The University of Manchester.
    5. Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar, 2014. "Overview: Handbook on Food: Demand, Supply, Sustainability and Security," Chapters, in: Raghbendra Jha & Raghav Gaiha & Anil B. Deolalikar (ed.), Handbook on Food, chapter 1, pages 1-21, Edward Elgar Publishing.
    6. Akhter Ali & Awudu Abdulai & Dil Bahadur Rahut, 2017. "Farmers' Access to Markets: The Case of Cotton in Pakistan," Asian Economic Journal, East Asian Economic Association, vol. 31(2), pages 211-232, June.

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    Keywords

    Markets and Market Access; Transport Economics Policy&Planning; Debt Markets; Access to Markets; Housing&Human Habitats;
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