Regulations, Brokers and Interlinkages: The Institutional Organization of Wholesale Markets in India

Minten, Bart; Vandeplas, Anneleen; Swinnen, Johan

doi:10.2139/ssrn.1984578

Cited by 6 publications

(8 citation statements)

References 49 publications

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“…This closely aligns with the finding that focal actors' provision of complementary services was instrumental for their successful interaction with farmers. However, buyers' market power can substantially reduce the benefits farmers derive from interactions with them, as they can transfer demand shocks to remote farmers with few market options 63,64 .…”

Section: Why Is This Methods So Important?mentioning

confidence: 99%

A scoping review of market links between value chain actors and small-scale producers in developing regions

et al. 2020

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Sustainable Development Goal 2 aims to end hunger, achieve food and nutrition security and promote sustainable agriculture by 2030. This requires that small-scale producers be included in, and benefit from, the rapid growth and transformation under way in food systems. Small-scale producers interact with various actors when they link with markets, including product traders, logistics firms, processors and retailers. The literature has explored primarily how large firms interact with farmers through formal contracts and resource provision arrangements. Although important, contracts constitute a very small share of smallholder market interactions. There has been little exploration of whether non-contract interactions between small farmers and both small- and large-scale value chain actors have affected small farmers’ livelihoods. This scoping review covers 202 studies on that topic. We find that non-contract interactions, de facto mostly with small and medium enterprises, benefit small-scale producers via similar mechanisms that the literature has previously credited to large firms. Small and medium enterprises, not just large enterprises, address idiosyncratic market failures and asset shortfalls of small-scale producers by providing them, through informal arrangements, with complementary services such as input provision, credit, information and logistics. Providing these services directly supports Sustainable Development Goal 2 by improving farmer welfare through technology adoption and greater productivity.

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Section: Why Is This Methods So Important?mentioning

confidence: 99%

A scoping review of market links between value chain actors and small-scale producers in developing regions

et al. 2020

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“…8 The two models above do not exhaust the possible channels by which price information may affect farmer prices. In India one important possibility is excessive fees collected by commission agents (Minten, Vandeplas, and Swinnen 2012). However, since RML circulates no information about market fees, it is unclear why it should lead to their reduction.…”

Section: I C O N C E P T U a L F R A M E W O R Kmentioning

confidence: 99%

Impact of SMS-Based Agricultural Information on Indian Farmers

Fafchamps¹,

Minten²

2012

The World Bank Economic Review

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320

199

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This study estimates the benefits that Indian farmers derive from market and weather information delivered to their mobile phones by a commercial service called Reuters Market Light (RML). We conduct a controlled randomized experiment in 100 villages of Maharashtra. Treated farmers associate RML information with a number of decisions they have made, and we find some evidence that treatment affected spatial arbitrage and crop grading. But the magnitude of these effects is small. We find no statistically significant average effect of treatment on the price received by farmers, crop value-added, crop losses resulting from rainstorms, or the likelihood of changing crop varieties and cultivation practices. Although disappointing, these results are in line with the market take-up rate of the RML service in the study districts, which shows small numbers of clients in aggregate and a relative stagnation in take-up over the study period. JEL codes: O13, Q11, Q13. The purpose of this study is to ascertain whether agricultural information distributed through mobile phones generates economic benefits to farmers. We implement a randomized controlled trial of a commercial service entitled Reuters Market Light (RML) offered by the largest and best-established private provider of agricultural price information in India at the time of the experiment. Operating in Maharashtra and other Indian states, RML distributes price, weather, and crop advisory information through SMS messages. We offered a one-year free subscription to RML to a random sample of farmers to test whether they obtain higher prices for their agricultural output.

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“…These stark facts raise serious questions on food distribution system, more specifically on the functioning and efficiency of agricultural markets and distribution systems. Some of the studies contested the role of regulation in agricultural marketing in the economic development *Corresponding author: jpbisen.iari@gmail.com in last decade (Pal et al 1993;GoI 2001;Gujral et al 2011;Minten et al 2012). However, Purohit et al (2017) has found positive effect of market regulations on agricultural growth, technology adoption, area expansion, fertilizer use and irrigated area.…”

Section: Introductionmentioning

confidence: 99%

Agricultural marketing reforms and e-national agricultural market (e-NAM) in India: a review

Kumar¹

2018

Agri. Econ. Rese. Revi.

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Efficient markets offer efficient price discovery and level playing field for all the actors. This paper systematically reviews developments in Indian agricultural marketing and emphasizes on addressing the challenges in implementation of e-NAM to achieve the goal of doubling farmer's income; hence the challenge of poverty reduction as envisaged in SDGs. The study captures various challenges in the implementation of e-NAM in terms of 3 I's (Infrastructure, Institution and Information) and advocates for strengthening the back-end of the supply chain with public-private interventions; amendment in state APMC Acts to accommodate for e-tendering operations and wide publicity of benefits of e-NAM among farmers.

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Regulations, Brokers and Interlinkages: The Institutional Organization of Wholesale Markets in India

Cited by 6 publications

References 49 publications

A scoping review of market links between value chain actors and small-scale producers in developing regions

A scoping review of market links between value chain actors and small-scale producers in developing regions

Impact of SMS-Based Agricultural Information on Indian Farmers

Agricultural marketing reforms and e-national agricultural market (e-NAM) in India: a review

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