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Where to sell ? market facilities and agricultural marketing


  • Shilpi, Forhad
  • Umali-Deininger, Dina


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.

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  • 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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    References listed on IDEAS

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    Cited by:

    1. Imai, Katsushi S. & Gaiha, Raghav & Thapa, Ganesh, 2011. "Supply response to changes in agricultural commodity prices in Asian countries," Journal of Asian Economics, Elsevier, vol. 22(1), pages 61-75, February.
    2. Raghav Gaiha & Nidhi Kaicker & Katsushi S. Imai & Ganesh Thapa, 2012. "Agriculture-Nutrition Pathway in India," The School of Economics Discussion Paper Series 1213, Economics, The University of Manchester.
    3. Ganesh Thapa & Raghav Gaiha & Katsushi S. Imai & Varsha S. Kulkarni, 2009. "Soaring Food Prices: A Threat or Opportunity in Asia?," Brooks World Poverty Institute Working Paper Series 6909, BWPI, The University of Manchester.

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

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