Organized Fresh Food Retail Chains Versus Traditional Wholesale Markets: Marketing Efficiency and Farmers’ Participation

Seema Bathla ()
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Seema Bathla: Jawaharlal Nehru University

Chapter 11 in Organised Retailing and Agri-Business, 2016, pp 207-227 from Springer

Abstract: Abstract The agricultural marketing system under the aegis of the Agricultural Produce Marketing and Regulation Act 1966 has yielded to change in accordance with the amendments laid down in the Model Agricultural Produce Market Committee Act 2003. The broad policy mandate has been to develop an efficient agri-marketing system with both back-end and front-end linkages between the growers and the industry that enables farmers to receive a fair price for their produce and consumers to realize value for their money. This chapter aims to examine and compare the magnitude of marketing and pricing efficiency realized by farmers under organized retail chains and traditional wholesale marketing formats. The analysis is based on a primary survey of 380 farm households in selected districts in Haryana where farmers have the choice to market their produce to village traders, wholesalers and organized fresh food retail chains. Broad findings reveal that farmers having contract with retail chains get atleast Rs. 100 to 150 per quintal more for their produce compared to other marketing channels. However, a negligible difference in the net price received by the contract and non-contract farmers is observed, implying that gains from retail contract are more through improvement in crop productivity. High risks on account of prices and production, rejection of produce by the company along with the fact that farmers cannot forego the wholesale markets necessitate a proactive role of the State Agriculture Marketing Board in addressing the challenges.

Keywords: Farm Size; Market Efficiency; Large Farmer; Wholesale Market; Marketing Channel (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1007/978-81-322-2476-1_11

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