Market facilities and agricultural marketing: evidence from Tamil Nadu, India

Forhad Shilpi and Dina Umali-Deininger

Agricultural Economics, 2008, vol. 39, issue 3, pages 281-294

Abstract: This article analyzes the effect of facilities and infrastructure available at the marketplace on a farmer's decision to sell at the market. 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 policy simulation indicates that the marginal benefits from an improvement in market facility will favor the poorer farmers in the context of India. Copyright (c) 2008 International Association of Agricultural Economists.

Date: 2008

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