Agricultural Marketing and Inclusive Growth in India

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Agricultural Marketing and Inclusive Growth in India
What does the Survey Data Suggest?
The Case of Two Villages in Medak District of Telangana State

(.)*ulu
Dept. o+ ,-ono*i-s% #s*ni .niversity% /yder0d
,.(il1 *r*ulu2redi++*il.-o*

.)*3ris4n
Dept. o+ ,-ono*i-s% #s*ni .niversity% /yder0d
,.(il1 pro+gr32g*il.-o*

5.6lit4
Dept.o+ ,-ono*i-s nd 7inn-e% 5I8S Pilni% /yder0d -*pus
,*il1pllit420its-4yder0d.-.in

Astract
84is pper is n tte*pt to study t4e role o+ gri-ulturl *r3eting in i*p-ting t4e s*ll nd lrge +r*ers in
rurl 8elngn in ter*s o+ t4eir prti-iption in selling -tivities% o0tining re*unertive pri-es% nd t4e
pro0le*s relting trnsport o+ t4eir produ-e nd +inlly t4e i*p-t on t4eir e-ono*i- well 0eing. #ur e*piri-l
nlysis 0sed on pri*ry s well s se-ondry dt suggests t4t in spite o+ li*ited 3nowledge 0out t4e
use+ulness nd +un-tioning o+ regulted gri-ulturl *r3eting pr-ti-es t4e s*ll nd *rginl +r*ers o+ t4e
study re 4ve 0een 0ene+ited due to 0etter pri-es nd ot4er *r3et relted +-ilities. 84e study uses t4e logit
*odel to dis-ern t4e i*p-t o+ vrious so-io e-ono*i- vri0les on t4e de-ision o+ s*ple +r*ers to prti-ipte
in t4e regulted *r3et pr-ti-es w4i-4 4elp t4e s*ll nd *rginl +r*ers in i*proving t4eir e-ono*i- well
0eing nd t4us pve t4e wy +or t4e* to 0e in-luded in t4e growt4 pro-ess. /owever% t4ere is need to do lot
to derive *ore nd tngi0le 0ene+its t4roug4 regulted *r3ets in rurl 8elngn.
!eywords" 9gri-ulturl *r3eting% in-lusive growt4% wreness% pri-e di++erentil% logit *odel

I Introduction
9gri-ulturl *r3eting involves t4e vrious inter-onne-ted servi-es nd -tivities relting t4e *ove*ent n
gri-ulturl produ-ts +ro* t4e +r* to t4e +inl -onsu*er. 84ese -tivities in-lude plnning produ-tion% growing
nd 4rvesting% grding% p-3ing% trnsporting% storge% gro- nd +ood pro-essing% distri0ution% dvertising nd
sles. 9gri-ulturl *r3et 4s now 0e-o*e n integrl prt o+ gri-ulturl produ-tion pro-ess. 84e develop*ent
o+ n e-ono*y in generl nd t4e gri-ulture se-tor in prti-ulr is -losely sso-ited wit4 t4e +-ilities vil0le
+or *r3eting o+ goods supplied 0y gri-ulture. 84e *r3eting o+ gri-ulturl produ-ts is *tter o+ gret
-on-ern to t4e +r*ers% -onsu*ers nd trders s it provides -4nnel +or selling gri-ulturl produ-e: nd +or
-onsu*ers *ens o+ stis+ying t4eir -onsu*ption needs: nd +or t4e trders it is sour-e o+ pro+it nd lively
4ood. 84e 0si- purpose o+ regulted *r3et is to eli*inte un4elt4y *r3et pr-ti-es% redu-e *r3eting
-osts% ensure +ir pri-es nd in generl prote-t t4e interests o+ +r*ers. (ore spe-i+i-lly% regulted gri-ulturl
*r3ets i* t ensuring re*unertive pri-es to t4e produ-er o+ gri-ulturl -o**odities% nrrowing down t4e
pri-e di++erentil 0etween t4e produ-er nd t4e -onsu*er nd redu-ing non-+un-tionl *rgins o+ t4e trders nd
-o**ission gents.
Indi *oved +ro* t4e +ood s4ortge e-ono*y in &;"0<s to t4e present +ood surplus e-ono*y. 7ood grin
produ-tion 4s in-resed 0y *ore t4n +our-+old +ro* low level o+ "& *illion tonnes in &;"0-"&. 5ut% w4et4er
t4is p4eno*enl su--ess 4elped t4e s*ll nd *rginl +r*ers= 84e >overn*ent o+ Indi% 0esides ot4er
progr*s% est0lis4ed regulted gri-ulturl *r3ets to ensure re*unertive pri-es to t4e +r*ers. 5ut% w4et4er
t4ese led to t4e in-lusion o+ s*ll nd *rginl +r*ers in t4e growt4 pro-ess= Do +r*ers pre+er to sell t4eir
produ-e in regulted *r3ets= I+ not w4y t4ey re not selling in gri-ulturl *r3ets= ?4t +-tors deter*ine
t4eir prti-iptin in gri-ulturl *r3ets= I+ t4ey re prti-ipting w4t is t4e e@tent o+ 0ene+its derived 0y t4e*=
?4t trns-tion -osts re involved= ?4t *ode o+ trnsport t4ey use= ?4et4er opertions 4eld t regulted
*r3et re -ondu-ive +or In-lusive >rowt4= 84ese re so*e o+ t4e Auestions we would li3e to ddress in t4is
pper t3ing (ed3 distri-t o+ 8elngn s t4e -se. 7or t4is purpose% regulted gri-ulturl *r3et o+
B4eer0d in (ed3 distri-ts ws sele-ted w4i-4 ws est0lis4ed in &;"0. It is one o+ t4e i*portnt nd t4e
oldest *r3ets in (ed3 distri-t o+ 8elngn Stte. Presently% it -o*prises o+ +our *ndls% viC: n*ely
B4eer0d% Do4ir% Ersng* nd Nyl3l. 84ere is lso su0-*r3et +or grins t Do4ir. 84ere re 0out &'"
villges in t4ese +our *ndls. 84e re o+ grin *r3et yrd t B4eer0d is 0out ' -res. 90out 4"
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-o**ission< gents nd "" w4olesle trders re pursuing t4eir 0usiness in t4is *r3et. >reen >r*% 5l-3
>r*% )ed >r*% 5engl >r* nd (iCe re t4e +ive i*portnt -rops w4i-4 rrive in t4e *r3ets. 84e rrivls
in t4e *r3et during re-ent yers revels n upwrd trend rnging +ro* &.' l34 Auintls in 2007-0F to 6." l34
Auintls in 20&&-&2. It is 4ertening to note t4t pri-es 4ve risen during t4is period +ro* )s. "70 to )s. &7'0
i.e.% t4ree-+old in-rese. I+ we loo3 t t4e individul -rops% 9rrivls o+ >reen gr* 4s dou0led w4ile pri-e 4s
registered si@-+old in-rese.84e rrivls o+ 5engl gr* 4s de-lined 0ut pri-es 4ve *rginlly in-resed. 84e
rrivls o+ )ed gr* 4ve in-resed nd pri-es lso in-resed signi+i-ntly. 84e rrivls o+ (iCe 4ve
su0stntilly in-resed 0ut pri-es in-resed t slower pr (Annual Reports, APMC’s Zaheerabad). ?it4 t4is
0-3ground o+ t4e *r3et% +ield survey 4s 0een -ondu-ted in t4e t4e two villges o+ (ed3 distri-t. In ddition%
se-ondry dt lso 4ve 0een nlyCed. (ore spe-i+i-lly% t4e o0Ge-tives o+ t4e study in-lude1 &! 8o identi+y t4e
so-io e-ono*i- +-tors in+luen-ing t4e prti-iption o+ t4e +r*ers in regulted gri-ulturl *r3ets: 2! to study
t4e per-eptions o+ t4e +r*ers 0out t4e vrious +-tors su-4 s pri-es% trns-tion -osts% et-: nd '! to ssess t4e
i*p-t o+ gri-ulturl *r3eting on t4e well0eing o+ s*ll nd *rginl +r*ers in t4e study re. 84e pper is
orgniCed s +ollows1 84e se-ond se-tion dels wit4 t4e dt -olle-tion nd nlysis *et4ods. 84e t4ird se-tion
is 0out pro+ile o+ t4e s*ple +r*ers long wit4 note on regulted *r3et e@perien-e in t4e study re. 84is
se-tion lso dels wit4 e*piri-l +indings nd t4e +inl se-tion is on -on-lusions nd poli-y suggestions.

II Data Collection Methods and Analysis
84e present study is 0sed on 0ot4 pri*ry nd se-ondry dt. ?e 4ve -olle-ted pri*ry dt +ro* +ield
survey -ondu-ted during 20&' in two villges o+ (ed3 distri-t o+ 8elngn stte. 84ese villges were sele-ted
on t4e 0sis o+ t4eir pro@i*ity to t4e regulted *r3et. 9--ordingly% Do4ir% distnt villge +ro* regulted
*r3et (0out 20 3* wy +ro* B4eer0d! nd )eGint4l% ner0y villge to t4e regulted *r3et (0out &0
3* +ro* B4eer0d! 4ve 0een sele-ted +or t4e +ield study. 7ro* e-4 o+ t4ese villges% "0 +r*ers 0elonging
to di++erent -tegories 4ve 0een sele-ted rndo*ly. In+or*tion regrding resons +or selling nd not selling t4e
gri-ulturl produ-e in regulted *r3et% ti*e o+ disposl o+ produ-e% sour-es o+ pri-e in+or*tion to t4e +r*ers
et-. 4ve 0een -olle-ted 0y d*inistering stru-tured Auestionnire. 84e reAuired dt 4ve 0een -olle-ted 0y
t4e ut4ors dire-tly 4olding interview wit4 t4e 3ey in+or*nts. 84e dt 4ve 0een nlyCed using si*ple
sttisti-l *et4ods long wit4 0inry logit *odel to ssess t4e willingness o+ +r*ers in prti-ipting in t4e
regulted *r3eting -tivities. In ddition% se-ondry dt were -olle-ted +ro* 9gri-ulturl (r3et Co**ittee%
B4eer0d. .sing t4is sour-e% in+or*tion regrding *r3et rrivls (in Auntu* nd vlue!% *r3et +ee
-olle-tion% nu*0er o+ Co**ission 9gents nd 8rders% villges served 0y t4e regulted *r3et et-. 4ve 0een
-olle-ted. 7ro* e-4 villge% "0 +r*ers 0elonging to di++erent -tegories were sele-ted. Dis-ussions were 4eld
wit4 *r3et o++i-ils to 4ve 0etter understnding o+ t4e wor3ing o+ t4e *r3et nd to sele-t t4e villges 4ving
reAuired -4r-ters +or t4e +ield study.
8o e@*ine t4e +-tors deter*ining +r*ers< prti-iption in regulted *r3et -tivities% 0inry logit *odel 4s
0een used. 84e *odel uses +r*ers< prti-iption s t4e dependent vri0le t4t is di-4oto*ous t3ing vlue o+
& i+ t4e +r*er prti-iptes nd 0 ot4erwise. 84e *odel is s +ollows1
P
i
H ,
! & ( .
0
&
&
&






∑ + −
+
= =






ik
X
k
e
i
X
Y
β β

6et
B
i
H I
0
J KI
3
X
i3
L.. (2!
84en
P
i
H
Z
e

+ &
&

LL ('!

9s B
i
rnges +ro* -M to J M% P
i
rnges +ro* 0 to & nd P
i
is non-linerly relted to B
i
.
In esti*0le +or*% t4e *odel is%
6
i
H 6n

+ = =







ik
X
k i
Z
Pi
Pi
β β
0
&
..(4!
?4ere% # is t4e logit. It s4ows 4ow t4e log odds in +vor o+ +r*ers< prti-iption in gri-ulturl *r3eting s
t4e respe-tive independent vri0le -4nges.
84e esti*0le +or* o+ t4e *odel *y 0e presented s1 is
6
i
H 6n P
i
N(& O P
i
!P H I
o
J I
&
X
&
J I
2
X
2
JI
'
X
'
J I
4
X
4
JI
"
X
"
J I
6
X
6
J I
7
X
7
J I
F
X
F
JI
;
X
;
J I
&0
X
&0
J Q
i
.("!
?4ere1
6
i
H log o+ t4e odds rtio. It s4ows 4ow log odds in +vor o+ +t4ers< prti-iption -4nge s t4e respe-tive
independent vri0le -4nges 0y unit.
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P
i
H Pro00ility t4t +r*er prti-iptes in gri-ulturl *r3eting
I
o
H -onstnt ter*
I
3
H -oe++i-ients
X
3
H +or D H &....&0% re t4e independent vri0les nd su0s-ript i denotes i
t4
o0servtion.
D
&
H ge
D
2
H ,du-tion% nu*0er o+ s-4ooling yers
D
'
H Distn-e +ro* t4e *r3et% nerer H& nd 0 ot4erwise
D
4
H pri-e per Auintl
D
"
H >ender o+ t4e +r*er% +e*leH&% *leH0
D
6
H *r3et in+or*tion% i+ vil0le H & nd 0 ot4erwise
D
7
H 8ype o+ t4e +r*er% s*ll% *ediu*H& nd 0 ot4erwise
D
F
H trns-tion -osts% i+ lrgeH& nd 0 ot4erwise
D
;
H -o**unity% SC% S8% 5CH& nd 0 ot4er wise
D
&0
H *ode o+ trnsport% 5ullo-3 -rtH& nd 0 ot4erwise
84e *odel is 0sed on t4e +ollowing 4ypot4eses1
&. 9ge o+ t4e +r*er 4s positive i*p-t on t4e prti-iption
2. ,du-tion 4s positive i*p-t on t4e prti-iption
'. Distn-e o+ t4e *r3et 4s negtive i*p-t on t4e prti-iption
4. In+or*tion on pri-es 4s positive i*p-t on t4e prti-iption
". 7e*le +r*ers do not prti-ipte in regulted gri-ulturl *r3eting.
6. (r3et in+or*tion 4s positive i*p-t on prti-iption.
7. S*ll nd *rginl +r*ers 4ve insigni+i-nt i*p-t on prti-iption
F. 8rns-tion -osts 4ve negtive i*p-t on prti-iption.
;. Co**unity o+ t4e +r*er 4s negtive i*p-t on gri-ulturl *r3eting.
&0. 8rditionl trnsport *et4ods 4ve negtive i*p-t on prti-iption.

III $rofile of Selected sa%&le 'ar%ers and the 'indings1
9s *entioned erlier% "0 +r*ers +ro* Do4ir villge nd "0 +r*ers +ro* )eGint4l villge 4ve 0een
sele-ted rndo*ly *3ing t4e totl s*ple siCe eAul to &00. Nerly two-t4irds o+ t4ese +r*ers re eit4er s*ll
or *rginl +r*ers (80le-&!. 84e *in purpose o+ t4e study ws to e@*ine t4e s*ll nd *rginl +r*ers
prti-iption in t4e gri-ulturl *r3eting nd t4e 0ene+its derived t4ereo+. It ws lso noti-ed t4t t4e
-o*position o+ +r*ers 0y siCe o+ lnd4olding is si*ilr in 0ot4 t4e sele-ted villges. 84e C4i sAure test revels
t4t t4ere is no sttisti-lly signi+i-nt di++eren-e (C4i sAureH &&0.0 nd t4e signi+i-n-e levelH0.2'! 0etween
t4e -o*position o+ t4e +r*ers in 0ot4 t4e villges.
Tale (" Co%&osition of Sa%&le far%ers
'ar%er Village ( Village ) All
(rginl 7r*ers &F
(;!
20
(&0!
'0
('F!
S*ll 7r*ers F
(4!
&7
(F."!
2"
(2"!
(ediu* 7r*ers &0
("!
0"
(2."!
&"
(&"!
6rge 7r*ers &4
(7!
F
(4!
22
(22!
8otl "0
(&00!
"0
(&00!
&00
(&00!
Source; Field data and the nubers in brackets are percenta!es
84e distri0ution o+ s*ple +r*ers 0y -ste revels t4t nerly 4l+ o+ t4e sele-ted +r*ers er +ro*
0-3wrd -ste nd not4er one-t4ird +r*ers 0elong to S-4eduled Cstes (80le-2!. 7urt4er% it is o0served t4t
inter-villge di++eren-es were *rginl nd sttisti-lly not signi+i-nt s reveled 0y -4i sAure test (C4i
sAureH ;;.0 nd t4e signi+i-n-e levelH0.24!.

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Tale )" Distriution of Sa%&le *ouseholds y Caste
Caste Village ( Village ) All
S.8. &
(2!
-- 0&
(&!
S.C. &7
('4!
&6
('2!
''
(''!
5.C. 2'
(46!
2'
(46!
46
(46!
#t4er ;
(&F!
&&
(22!
20
(20!
8otl "0
(&00!
"0
(&00!
&00
(&00!
Source; Field data and the nubers in brackets are percenta!es
84e distri0ution o+ sele-ted +r*ers 0y ge revels t4e +-t t4t nerly 4l+ o+ t4e* re ged (i.e. 0ove
"0 yers! nd not4er one-t4ird o+ +r*ers re young in ge (i.e. 0elow 40! Inter-villge -o*prison revels t4t
ged +r*ers re reltively *ore in Do4ir villge w4ile young +r*ers re reltively *ore in )eGint4l (80le-'!.
9nd t4ere is no sttisti-lly signi+i-nt di++eren-e in t4e -o*position o+ ge 0etween two villges (C4i sAure
H&&0.0 nd t4e signi+i-n-e level H 0.2'!.
Tale +" Distriution of ,es&ondents y Age
9ge >roup (in
yers!
$illge & $illge 2 9ll
5elow '0 2
(4!
"
(&0!
7
(7!
'0-40 &&
(22!
&"
('0!
26
(26!
40-"0 ;
(&F!
&&
(22!
20
(20!
90ove"0 2F
("6!
&;
('F!
47
(47!
8otl "0
(&00.00!
"0
(&00.00!
&00
(&00.00!
Fi!ures in brackets are percenta!es
-tili.ation of ,egulated Market
)egulted gri-ulturl produ-e *r3ets re est0lis4ed to ensure 0etter pri-e to t4e +r*ers. 84e +ield
survey revels t4t one o+ t4e i*portnt resons +or +r*ers selling t4eir produ-e in regulted *r3ets is t4e
prospe-ts o+ getting 0etter pri-e in t4e regulted *r3et. #ver 70 R o+ +r*ers 0elonging to villge & nd over
;0 R o+ +r*ers 0elonging to villge 2 re selling t4eir produ-e in B4eer0d regulted *r3et (80le 4 nd "!.
84us% over F0 R o+ +r*ers< reported t4t t4ey e@pe-t to get 0etter pri-e in t4e regulted *r3et. Si*ilrly% 0out
72 R o+ +r*ers 4ve reported t4t one o+ t4e resons +or selling in t4e regulted *r3et 4s 0een t4e --ur-y in
t4e *esure*ent.
Tale /" ,easons for selling in ,egulated Market
(In Per-entge!
8ype )esons
9 5 C D , 7
Marginal 'ar%ers 6'.& "2.6 44.7 60."2 "2.6 7.F
S%all 'ar%ers ;2 F4 24 F4 F0 F
Mediu% 'ar%ers ;'.' ;6.6 "'.' 60 F6.6 40
0ig 'ar%ers ;".4 F&.F 27.2 F6.' ;0.; 40.;
All F2 72 'F 77 7' 20
"ote# A$Price, %$easureent, C$Stora!e, &$'uick disposal, ($)ediatel* Pa*ent, F$An* other
Source# Field Sur+e*
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Tale 1" ,easons for not selling in ,egulated Market
(In Per-entge!
8ype )esons
& 2 ' 4 " 6 7 F ; &0
Marginal 'ar%ers '6.F '4.2 26.' ".2 &F.4 7.F 2.6 &'.& &'.& 7.F
S%all 'ar%ers &6 &6 &2 4 F 4 - &6 &2 &6
Mediu% 'ar%ers 20 20 &'.' &'.' 6.6 &'.' 6.6 20 20 6.6
0ig 'ar%ers 27.2 &F.& 27.2 &'.6 27.2 4."4 ;.0 &'.6 22.7 &F.&
All 27 24 2& F &6 7 4 &" &6 &2
"ote#,$-i!h .ransport Cost, /$ "ot a+ailabilit* o0 transport cost, 1$Probles o0 tie, 2$ Prices are not
reunerati+e,3$ More 4aitin! tie,5$An* other reasons, 6$7on! distance, 8$Malpractices, 9$ -ea+*
Coission, ,:$ 7o4 Marketable Suppl*
Source# Field Sur+e*
9not4er i*portnt reson +or selling in regulted *r3et is t4e i**edite re-eipt o+ -s4 +or t4e sle o+ produ-e.
>enerlly% +r*ers +-e liAuidity -run-4 t t4e ti*e o+ 4rvest. 84ey re eger to dispose o+ t4eir produ-e to
liAuidte t4eir s4ort ter* nd long ter* de0t. 84e +ield dt revels t4t not only s*ll 0ut even lrger +r*ers re
eger to sell t4eir produ-e to i*prove t4eir liAuidity position. #ver 70 R o+ +r*ers +elt t4t t4e reson +or
selling in regulted *r3et is t4e possi0ility o+ Aui-3 sle nd getting -s4 in return. 84e *in resons +or
+r*ers not selling t4eir produ-e in regulted *r3ets pper to 0e 4ig4 trnsport -ost% non vil0ility o+
trnsport +-ilities% long witing ti*e t regulted *r3et. S*ll +r*ers e@perien-e *ore di++i-ulties t4n lrge
+r*ers in t4is regrd. 7or instn-e% over '6 R o+ s*ll +r*ers reported t4t t4ey were not selling t4eir produ-e
in regulted *r3et 0e-use o+ 4ig4 trnsport -ost w4ile only 27 R o+ 0ig +r*ers en-ountered su-4 pro0le*: it
is interesting to note t4t only +ew +r*ers (0out "! in )egint4l were not selling t4eir produ-e in regulted
*r3et. Invri0ly ll t4e +r*ers were t3ing t4eir produ-e 0y privte trnsport to regulte *r3et (80le-6!.
No gents were -o*ing to t4e villge to pur-4se gri-ulturl produ-e. #nly o++i-ils +ro* sugr +-tories visit
t4e villge to inspe-t t4e sugr-ne nd instru-t w4en t4e -ne s4ould 0e 0roug4t to t4e +-tory. In Do4ir villge%
t4ere is su0-*r3et yrd. 84ere+ore% *ost o+ t4e +r*ers sell t4eir produ-e in t4e su0 *r3et. So*eti*e% t4ey
t3e t4eir produ-e to B4eer0d (r3et 0e-use o+ vil0ility o+ -onvenient nd -4ep trnsport +-ilities. In
+-t% lrge +r*ers growing -otton sell to pur-4se gents w4o visit t4e villge. 84ese gents pre+er to -ont-t
lrge +r*ers s t4ey -n get tru-3 lods o+ -otton.
Mode of Trans&ort
84e trnsport used +or *oving produ-e to *r3et indi-tes t4t t4ree w4eelers nd tr-tors re i*portnt *odes
o+ trnsport (80le- 6!. (ore t4n 4l+ o+ t4e +r*ers use t4ree-w4eelers nd one t4ird produ-ers use tr-tors. It
is lso o0served t4t lrge +r*ers w4o generlly own tr-tor pre+er to use t4e tr-tor +or trnsporting t4eir
produ-e w4ile s*ll +r*ers *3e use o+ t4ree-w4eelers.
Tale 2" Mode of Trans&ort
(In Per-entge!
8ype (ode
& 2 ' 4 "
Marginal 'ar%ers 2F.; 7.F '6.F 2F.; 2.6
S%all 'ar%ers '2 &2 64 4 -
Mediu% 'ar%ers 40 26.6 60 26.6 -
0ig 'ar%ers '6.' 22.7 "4." &F.& -
All '4 &" "& 2; &
"ote#,$ .ractor, /$ .epo, 1$.hree ;heeler, 2$%ullock Carts,3$ <thers
Source# Field Sur+e*
Ti%e &attern of Dis&osal of $roduce
,-ono*i- -ondition o+ t4e +r*ers -n 0e ssessed 0y loo3ing t ti*e-pttern o+ disposl o+ produ-e.
9l*ost ll t4e +r*ers (0ot4 s*ll s well s lrge! dispose t4eir produ-e wit4in *ont4 +ter t4e 4rvest (80le-
7!. It re+le-ts t4e severity o+ liAuidity pro0le* (i.e.% need +or -s4!. 84e +r*ers re -o*pelled to sell t4eir
produ-e i**editely +ter 4rvesting (usully w4en pri-es re low!. 84is is true in 0ot4 t4e villges under study.
It only 4ig4lig4ts t4e need +or t4e e++orts to 0e *de 0y >overn*ent to see t4t +r*ers re-eive lon ginst
-rops grown so t4t +r*ers re 0le to sell t4eir produ-e w4en t4e pri-es re +vor0le
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Tale 3" Ti%e of Dis&osal of $roduce
(In Per-entge!
8ype 8i*e o+ Disposl o+ Produ-e +ter 4rvesting
& 2 ' 4
Marginal 'ar%ers &00 - - -
S%all 'ar%ers FF 4 - -
Mediu% 'ar%ers ;'.' 6.6 - -
0ig 'ar%ers &00 - - -
All ;6 2 - -
"ote#,$ ;ithin 2 4eeks, /$ /=2 4eeks, 1$8=,/ 4eeks, 2$,/ 4eeks and abo+e
Source# Field Sur+e*
Source of $rice Infor%ation
7r*ers re-eive in+or*tion 0out pri-es previling in regulted *r3et +ro* lo-l trders% 0y
personlly visiting t4e *r3et nd 0y *3ing p4one -lls to t4e *r3et nd to t4e +riends (80le-F!. It is
interesting to note t4t s*ll +r*ers depend upon lo-l trders nd personl visits to gt4er in+or*tion on
*r3et pri-es w4ile lrge +r*ers depend upon lo-l trders nd p4one -lls. 6rge +r*ers do not t3e t4e
trou0le o+ personlly visiting t4e *r3et. Surprisingly: *edi is not one o+ t4e i*portnt sour-es o+ *r3et pri-e
in+or*tion to t4e +r*ers. It i*plies t4t govern*ent s4ould *3e ll-out e++orts to en4n-e t4e role o+ *edi in
trns*itting pri-e in+or*tion to t4e +r*ers.
Tale 4" Source of $rice Infor%ation
(In Per-entge!
8ype Sour-e o+ Pri-e In+or*tion
& 2 ' 4 "
Marginal 'ar%ers - 47.' 47.' '6.F '4.2
S%all 'ar%ers - 4F '2 60 2F
Mediu% 'ar%ers &'.' 40 "'.' 66.6 6.6
0ig 'ar%ers &F.& 40.; 27.2 "0 &F.&
All 4 4" 40 "0 2"
"ote# ,$Media, /$7ocal .raders, 1$ Personnel +isit, 2$Phone, 3$ <thers
Source# Field Sur+e*
84ere is generl i*pression t4t only lrge +r*ers t3e t4eir produ-e to regulted *r3et. 84e +ield
survey% 4owever% revels t4t it is t4e s*ll nd *rginl +r*ers% w4o depend *ore on regulted *r3et to sell
t4eir produ-e. In t4e sele-ted villges% s*ll nd *rginl +r*ers re selling F0-;0R o+ totl sles in regulted
*r3et w4ile lrge +r*ers re selling only two-t4ird o+ t4eir totl sles in regulted *r3et (80le-;!. #n t4e
w4ole% t4e +r*ers re selling t4ree-+ourt4 o+ t4eir produ-e in regulted *r3et nd re*ining one-+ourt4 in lo-l
Not4er *r3ets. 84is is prtly 0e-use o+ good rod -onne-tivity 0etween t4e sele-ted villges nd regulted
*r3et -oupled wit4 good privtely-operted trnsport +-ilities: nd prtly 0e-use o+ pur-4se gents w4o
pre+er to pur-4se gri-ulturl produ-e +ro* lrge +r*ers wit4 su0stntil *r3et0le surplus. 84e pri-e
di++erentil 0etween regulted nd lo-l *r3ets is +ound to 0e sttisti-lly signi+i-nt s t4e -4i-sAure vlueH
66.0 nd t4e signi+i-n-e level H 0.02. Si*ilrly t4ere e@ists sttisti-lly signi+i-nt di++eren-e 0etween t4e
ernings o+ t4e +r*ers 0etween lo-l nd regulted *r3ets (C4i-sAure vlueH&&0.0 wit4 signi+i-n-e
levelH0.0&!.
Tale 5" Sales of the &roduce
8ype Sty sold
6o-l (r3et )egulted (r3et
Sty 9*ount Pri-e Sty 9*ount Pri-e R in sle in )egulted (r3et
(rginl 7r*ers
&04" N 'F
(27."!
&76 N 'F
(4.6'!
2F"700 N 'F
(7"&F.42!
&62'.2;

F6; N 'F
(22.F6!
&442F00 N 'F
('7;6F.42!
&660.2; F'.&"
S*ll 7r*ers
&760 N 2"
(70.4!
&62 N 2"
(6.4F!
&F'000 N 2"
(7'20!
&&2;.62

&";F N 2"
(6'.;2!
22'6'"0 N 2"
(F;4"4!
&';;.46 ;0.7;
(ediu* 7r*ers
&770 N &"
(&&F!
'0; N &"
(20.6!
"72'00 N &"
('F&"'.''!
&F"2.&0

&46& N &"
(;7.4!
'&67"00 N&"
(2&&&66.66!
2&6F.0' F2."4
6rge 7r*ers
"2&2 N 22
(2'6.;0!
&70F N 22
(77.6'!
&"44'00 N 22
(70&;".4"!
;04.&"
'"04 N 22
(&";.27!
6742770 N 22
('064F;."4!
&;24.'0 67.22
9ll
;7F7 N &00
(;7.F7!
2'"" N &00
(2'.""!
2"F"'00 N &00
(2"F"'!
&0;7.7;
74'2 N &00
(74.'2!
&'2&;420 N &00
(&'2&;4.2!
&77F.7& 7".;'
"ote# 'uantit* in >uintals, Aount in Rs?
Source# Field Sur+e*
$rice 0enefit
9s *entioned erlier% t4e purpose o+ est0lis4ing regulted *r3et is to ensure 0etter pri-e to t4e
+r*ers. 84e +r*ers% on t4e w4ole% re-eived )s.&F00N- per Auintl in regulted *r3et ginst )s. &&00N- in
t4e lo-l *r3et i.e.% 0out 70R 4ig4er. 84is is true not only in -se o+ lrge +r*ers 0ut lso true in -se o+
s*ll +r*ers. /owever% it ppers t4t lrge +r*ers re deriving lrger *ounts o+ 0ene+its +ro* regulted
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*r3et. 7r*ers% in generl% opined t4t t4ere is pri-e di++eren-e o+ )s.&2' per Auintl 0etween regulted
*r3et nd outside *r3et (80le-&0!. /owever% t4ere is di++eren-e in t4e per-eption o+ t4e +r*ers s t4e +irst
villge +r*ers +elt t4e di++eren-e to 0e s 4ig4 s )s.&6"N- nd t4e +r*ers o+ se-ond villge +elt it ws only
)s.F2N-. #n t4e w4ole% +r*ers o+ 0ot4 villges unni*ously reported t4t pri-es in regulted *r3ets re 4ig4er.
9s 4e nlysis lso reveled t4t lrge +r*ers got lrger 0ene+it.
Tale (6" $rice Difference etween ,egulated %arket and #ocal %arket
8ype 9verge pri-e di++eren-e per Auintl in )s.
Marginal 'ar%ers &0'.;
S%all 'ar%ers &&6
Mediu% 'ar%ers &;0
0ig 'ar%ers &20.4
All &2'."
Source# Field Sur+e*
Awareness aout Govern%ent Sche%es
8o edu-te t4e +r*ers regrding gri-ulturl *r3eting t4e >overn*ent o+ Indi 4s strted vrious
s-4e*es li3e Disn Cll Centre% Digitl (ndi% (r3et portl in+or*tion% )yt4u (itr% >opl (itr et-. 7ull
potentilities o+ t4ese s-4e*es -n 0e reliCed only w4en t4ere is deAute wreness 0out t4ese s-4e*es
*ong t4e +r*ers. 7ield study revels t4t *ost o+ t4e +r*ers in 0ot4 t4e villges re not deAutely in+or*ed
0out t4ese s-4e*es (80le- &&!.
Tale((" Awareness a%ong 'ar%ers
8ype Per-entge o+ +r*ers 4ving wreness
& 2 ' 4 " 6 7 F ; &0
9g*r3
Marginal 'ar%ers - - - - - - - - - -
S%all 'ar%ers 4 - - - 4 - F 4 - -
Mediu% 'ar%ers &'.' 6.6 - - - 6.6 &'.' - - 6.6
0ig 'ar%ers &'.6 - - - - - &'.6 4." 66.6 4."4
All 6 - - - & & 7 2 2 2
"ote#,$@isan Call centre# ,8::=,8:=,33,, /$&i!ital Mandi, 1$S-A B)@P), 2$ Future Market,
3$Contract 0arin! ,5$Market portal in0oration, 6$R*thu Mithra, 8$Aopala Mithra, 9$ Farers
clubs, ,:$ A!ark
Source# Field Sur+e*
In w4t +ollows re t4e results o+ t4e esti*ted logit *odel1 84e *odel uses 0ot4 so-io nd e-ono*i-
+-tors s t4e deter*innts o+ t4e +r*ers< prti-iption in regulted gri-ulturl *r3et1
Tale ()" ,esults of the 0inary #ogit Model
$ri0le 5 S.,. ?ld Sig. ,@p(5! ;"R C.I.+or ,XP(5!
6ower .pper
ge 0.;;2TT 0.4;0 4.&02 0.044 2.6;F &.0'' 7.0"'
edu-tion &.&0'TT 0.""& '.;;4 0.046 '.006 &.022 F.F""
Distn-e -0.720 0."F7 &."04 0.222 0.4F7 0.&"4 &."'"
pri-e 2."62T 0.6&& &7."F" 0.000 &2.;64 '.;&" 42.;'6
>ender -0.020 0.7;; 0.00& 0.;F0 0.;F0 0.20" 4.6;0
(r3et in+or*tion 2."2'T 0.72& &2.242 0.00& &2.46F '.0'4 "&.2'4
8rns-tion -osts -0.00& 0.0&" 0.00& 0.;70 0.;;; 0.;7& &.0'0
8ype o+ t4e +r*er &.&64TT 0.60" '.720 0.0"& '.2&0 0.;F& &0."04
Co**unity 0.&7' 0."'6 0.&06 0.742 &.&;' 0.4&F '.40;
(ode o+ trnsport -0.606 0."2F &.'&F 0.2"& &.F'4 0.6"& ".&67
Constnt -'.420TT &.&6& ;.0"4 0.00' .0'&

-2 6og li3eli4ood
&&0.22
Co@ U Snell ) SAure 0.'F"
Ngel3er3e ) SAure
0."'4



"ote# (stiated usin! sur+e* data? C indicates si!ni0icance at ,D and CC indicates si!ni0icance at 3D le+el?
84e esti*tion o+ 0inry logit *odel indi-tes t4t *r3et prti-iption *ong t4e +r*ers is -onne-ted to t4e
Developing Country Studies www.iiste.org
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$ol.4% No.&4% 20&4

4&
*r3et in+or*tion long wit4 ot4er vri0les in t4e study re. 84e *Gor +-tors t4t ++e-ted *r3et
prti-iption re ge% edu-tion% pri-e% type o+ t4e +r*er nd *r3et in+or*tion. 84e ot4er vri0les -onsidered
in t4e *odel 4d e@pe-ted signs 0ut were not sttisti-lly signi+i-nt. 5sed on t4ese +indings t4e +ollowing
-on-lusions re drwn.

IV Conclusion and $olicy Suggestions
1. Contrry to t4e generl 0elie+% t4e study revels t4t t4e s*ll nd *rginl +r*ers re 0ene+itted s t4eir
ernings 4ve in-resed due to t4e prti-iption in gri-ulturl *r3eting. 84us it *y 0e -on-luded t4t
prti-iption in regulted gri-ulturl *r3eting pves t4e wy +or t4ese +r*ers to 0e in-luded in t4e
growt4 pro-ess. Sin-e *ost o+ t4e s*ple +r*ers re in-lined towrds selling t4eir produ-e in t4e
regulted *r3ets% t4e govern*ent s4ould strengt4en in+rstru-ture +-ilities nd provide proper grding
nd stndrdiCtion pro-edures.
2. 9s reveled 0y C4i- sAure tests% it see*s t4ere re no di++eren-es in t4e ge -o*position nd t4e -ste
-o*position in t4e two villges o+ study re. 84e inter villge di++eren-es in t4e -o*position o+ t4e type
o+ +r*ers re *rginl nd t4e di++eren-e is not sttisti-lly signi+i-nt. 84is indi-tes *ore or less
si*ilr so-il sitution in t4e villges o+ 8elngn stte.
3. #ur dt nlysis indi-tes t4t t4e *Gor +-tors in+luen-ing sles in t4e regulted gri-ulturl *r3ets
re pri-e% storge +-ilities% Aui-3 disposls nd t4e speedy py*ent. 84e *Gor +-tor t4t 4inders t4e
sles is t4e trnsport -ost. Sin-e pri-e di++erentil is n i*portnt vri0le% strengt4ening regulted
*r3ets nd *3ing +r*ers prti-ipte is n i*portnt -4llenge in 8elngn. 84e govern*ent s4ould
lso t3e t4e *esures to edu-te +r*ers on negoti0le wre4ousing re-eipt s-4e*e nd pledge +inn-e
to void t4e distress sles. .
4. 84e e*piri-l nlysis 0sed on logit *odel suggests t4t in spite li*ited wreness 0out t4e
gri-ulturl *r3eting *ong t4e +r*ers it 4d signi+i-nt nd positive i*p-t on +r*ers< prti-iption
in t4ese -tivities t4us 4ig4lig4ting t4e i*portn-e o+ *r3et in+or*tion progr*s.
5. 9ge o+ t4e +r*er% edu-tion nd pri-e di++erentil pper to in+luen-e signi+i-ntly t4e +r*ers<
prti-iption in gri-ulturl *r3ets. 84e ot4er vri0les su-4 s gender% -o**unity% distn-e% trns-tion
-osts nd *ode o+ trnsport 4ve e@pe-ted signs 0ut sttisti-lly not signi+i-nt. 84e e*piri-l nlysis
lso revels t4t type o+ t4e +r*er 4s signi+i-nt i*p-t on prti-iption indi-ting t4t s*ll nd
*rginl +r*ers do prti-ipte in regulted gri-ulturl *r3ets.
6. 84e study lso revels t4t t4e wreness *ong t4e +r*ers regrding govern*ent s-4e*es o+
gri-ulturl *r3eting is not deAute nd t4ere is need to intensi+y nd e@pnd t4e wreness
-*pigns 0out t4e vrious s-4e*es nd t4e 0ene+its relted to gri-ulturl *r3eting. 84e use o+ rdio
nd television *edi to 0rod-st *r3et pri-es regulrly s4ould 0e i*proved. 84e lo-l news ppers lso
s4ould ply role in edu-ting people 0out t4e ltest develop*ents prti-ulrly relting pri-e -4nges.
In ddition% using we0 portls to pve t4e wy +or glo0l *r3eting s4ould 0e i*ple*ented. 84e toll +ree
nu*0er +or in+or*tion% &FF0-&F0-&""& s4ould 0e widely populriCed. 7inlly% t4e govern*ent s4ould
-on-entrte on pro*oting *r3eting reser-4 nd t3e *esures to -onvert gri-ulture in to gri-ulturl
0usiness.

,eferences
V&P 9-4ry% S.S. U 9grwl% N.6. (20&0!% 9gri-ulturl (r3eting in Indi% New Del4i1 #@+ord U I5/
Pu0lis4ing Co. Pvt. 6td.
V2P 5rit4l% P. S.% E4% 9. D. nd Sing4% /. (2007! W6in3ing 7r*ers to (r3et +or /ig4 $lue 9gri-ulturl
Co**oditiesX% A!ricultural (conoics Research Re+ie4% $ol. 20% pp. 42"-';.
V'P 54ogpp (&;F2! W(r3eting o+ 9gri-ulturl Produ-e in >ul0rg Division o+ Drnt3X P4.D. t4esis%
Drnt3 .niversity% D4rvd
V4P D4n3r% >. /.% 200'% Develop*ent o+ Internet 5sed 9gri-ulturl (r3eting Syste* in Indi% A!ricultural
Marketin!, 4" (4!1 7-&6.
V"P 4ttpNNwww.g*r3net.ni-.in
V6P 4ttpNNwww.*r3et.p.ni-.in
V7P (#9 (200&!% )eport o+ ,@pert Co**ittee on Strengt4ening nd developing o+ gri-ulturl *r3eting%
>overn*ent o+ Indi% (inistry o+ 9gri-ulture Deprt*ent o+ 9gri-ulturl U Coopertion% Eune.
VFP Pt43% N. (200;! WContri0ution o+ 9gri-ulture to t4e Develop*ent o+ Indin ,-ono*yX% .he Eournal o0
)ndian Mana!eent and strate!*% $ol. &4(&!% En-(r.% pp. "2- "7.
V;P )4*n% (u4**d 7Clur% 200'% 9gri-ulturl (r3eting Syste* in 5ngldes4. A!ricultural Marketin!%
4" (4!1 2;-'2.
V&0P )e4*n%S% SelvrG% ( nd (. Syed I0r4i* (20&2!1 WIndin 9gri-ulturl (r3eting- 9 )eviewX% 9sin
Eournal o0 A!riculture and Rural &e+elopent% $ol. 2% No.&% pp. 6;-7"
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