Do storage and structural factors determine agricultural commercialization in India

Anand Ganesh-Kumar and Varun Kumar Das ()
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Varun Kumar Das: Indira Gandhi Institute of Development Research

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

Abstract: This paper analyses the role of storage facility and structural factors in determining agricultural commercialization in India. Commercialization of agriculture represents an important aspect of farm market behaviour. Farmers commercialization decision may be represented by farmers decision to participate in market sale, degree of market participation, number of market transactions and diversity of market agency sale. Access to storage could significantly regulate post-harvest management and marketing decisions by farmers. It could prevent distress sale and enhance better commercialization practices by farm households. Apart from access to storage facilities, this study considers various other farm, household, and structural variables in affecting farmers crop sale outcomes. Results show that farm households with likely access to storage facility have higher probability to participate in market transaction, sell more number of crops, and are more likely to have higher number of market transactions. This shows that having access to storage facility is likely to raise agricultural commercialization of farmers in India. The findings also show that structural or location specific variables which are beyond the control of the farm and household could significantly affect farmers marketing decisions.

Keywords: Commercialization; storage; sale ratio; agency sale; sale diversity; market participation; market transaction; structural factors (search for similar items in EconPapers)
JEL-codes: O13 Q12 Q13 Q18 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2020-01
New Economics Papers: this item is included in nep-agr
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