Supermarket procurement and farmgate prices in India

Nuthalapati, Chandra Sekhara Rao; Sutradhar, Rajib; Reardon, Thomas; Qaim, Matin

doi:10.1016/j.worlddev.2020.105034

Cited by 30 publications

(17 citation statements)

References 45 publications

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“…Accumulated evidence shows that reducing the chain of intermediaries between the farmerproducer and consumer can benefit the former through higher price realization [40][41][42]. A large number of startups focus on innovations for linking the farmers in far-flung areas with the buyers of their produce (Table 1).…”

Section: Output Market Linkagesmentioning

confidence: 99%

Has Open Innovation Taken Root in India? Evidence from Startups Working in Food Value Chains

Nuthalapati

Nuthalapati²

2021

Circ.Econ.Sust.

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Section: Output Market Linkagesmentioning

confidence: 99%

Has Open Innovation Taken Root in India? Evidence from Startups Working in Food Value Chains

Nuthalapati

Nuthalapati²

2021

Circ.Econ.Sust.

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“…Contract farming agreements that provide farmers with a fixed price for their harvest could be viable, though they are hard to coordinate when the farmer base is atomized and sporadic and may exclude force majeur events such as a pandemic. Fostering supply chain modernization through, for instance, direct supermarket procurement could also help improve prices and reduce price risk (Nuthalapati et al., 2020). In addition, private index insurance products that provide a payout when the local market price (for a reference variety and quality) falls under a minimum threshold, without provisions for procuring the product itself, may be a potential solution to the problems associated with price guarantee schemes, by providing additional income to farmers during generalized price downfalls, yet avoiding any direct market intervention.…”

Section: Discussionmentioning

confidence: 99%

Crop prices, farm incomes, and food security during the COVID‐19 pandemic in India: Phone‐based producer survey evidence from Haryana State

Ceballos

Kannan²,

Kramer

2021

Agricultural Economics

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In March 2020, India declared a nationwide lockdown in response to the COVID‐19 pandemic. Such restrictions on mobility interrupted the normal functioning of agricultural value chains. For a sample of 1767 tomato and wheat producers in the state of Haryana, we study to what extent the lockdown limited access to inputs, labor, machinery, and markets to produce, harvest, and sell their crops. We quantify crop income reductions during the first months of the lockdown and analyze to what extent these are associated with borrowing and food insecurity. We find that wheat producers, for whom state‐led procurement guaranteed market access at fixed prices, suffered minimal declines in income. For tomato producers—an already more vulnerable population—income fell by 50% relative to their expected income in a normal year, largely due to a steep fall of tomato prices as they shifted from wholesale markets to local retail markets, resulting in a sharp increase in local supply. Relative to wheat producers affected by the lockdown, reduced income for tomato producers was associated with an increase in borrowing and reduced food security. We conclude that targeting producers of crops that face substantial price risk and introducing policies that stabilize market prices are important in efforts to aid recovery and build resilience of smallholder farmers.

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“…These findings are discussed with reference to the market access literature (De Janvry et al, 1991;Stringfellow et al, 1997;Key et al, 2000;Berdegué, 2001 andSchwentesius and Gómez, 2002;Kirsten and Sartorius, 2002;Osborne, 2005;Coulter, 2007;Hazell et al, 2007;Barret, 2008;Hellin et al, 2009;Kyeyamwa et al, 2008;Shiferaw et al, 2008;Markelova et al, 2009;Bernard and Spielman, 2009;Markelova and Mwangi, 2010;Balaji, 2016;Sitko et al, 2018;Nuthalapati et al, 2020) which associates trade intermediaries buying at farmgate with market imperfections, rent positions, and inefficiency. The findings of this study show instead that direct access by farmers to markets is not a panacea and it is necessary to distinguish between different markets and value chains, as the market access narrative might sometimes be applied beyond its realisable scope.…”

Section: Marta Marson*mentioning

confidence: 92%

Direct access to markets by farmers and the role of traders: insights from Kenyan and Tanzanian leafy vegetables markets

2022

Stud. Agr. Econ.

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The research literature shows that agriculture has potential for development, job creation and structural change if agricultural value chains are considered in their entirety: from inputs, to farm, through processing, until marketing. This is particularly important in the case of Africa, where agriculture contributes in a major way to GDP and employment. However, this focus on value chains does not seem to have been accompanied by attention to the diversity of actors operating along value chains. Based on an extensive literature review on access to markets by farmers and on participatory research with farmers, traders, and sectoral stakeholders of leafy vegetables value chains in Kenya and Tanzania, this study argues that the role played by traders in local fresh produce markets in Africa is poorly understood and supported. It is argued that powerful narratives about the benefits of direct access to market by farmers, which are also present in academic literature, are sometimes overoptimistic, or interpreted beyond their scope and applied regardless of the specific features of actors and produce. The study shows that the leafy vegetables trade provides self-employment for many women, and that it has positive impacts on other groups, notably farmers.

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Supermarket procurement and farmgate prices in India

Cited by 30 publications

References 45 publications

Has Open Innovation Taken Root in India? Evidence from Startups Working in Food Value Chains

Has Open Innovation Taken Root in India? Evidence from Startups Working in Food Value Chains

Crop prices, farm incomes, and food security during the COVID‐19 pandemic in India: Phone‐based producer survey evidence from Haryana State

Direct access to markets by farmers and the role of traders: insights from Kenyan and Tanzanian leafy vegetables markets

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