https://orcid.org/0000-0002-0932-3688
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Abstract
The choice of marketing channels holds significant implications for the economic welfare and stability of smallholder dry chilli farmers in India. This study aims to investigate the impact of participating in modern marketing channels on the economic welfare of smallholder dry chilli farmers. Dry chilli marketing in Andhra Pradesh encompasses both traditional and modern channels. Traditional avenues include Agricultural Produce Market Committees, while modern options involve linking with retail malls and utilizing the Kalgudi e-market online platform. The first stage of multivariate endogenous switching regression model (MESRM) reveals significant determinants influencing farmers’ participation in modern channels. Factors like access to extension services, education, technical support from ANGRAU and the Department of Agriculture, engagement with retail malls and e-markets, access to market information, and membership in Farmers’ Producer Organizations encourage farmers to adopt modern channels. The subsequent MESRM stage reaffirms these factors’ positive impact on household welfare across various marketing channels. The study’s focal point, Average Treatment Effects, highlights substantial income improvements for participants in modern marketing channels. The counterfactual analysis reveals that smallholder farmers engaging in modern marketing channels would have experienced lower gross economic welfare if they had not participated. These findings underscore modern channels’ vital role in enhancing smallholder farmers’ economic well-being. So, Government entities and agricultural institutions should prioritize developing linkages between farmers and retail malls. Ensuring robust digital infrastructure, including reliable internet connectivity and user-friendly online platforms, is essential to empower farmers in navigating modern channels effectively. Furthermore, policymakers should consider hybrid marketing strategies that seamlessly blend traditional and modern channels to cater to the diverse preferences of consumers. By acknowledging these findings and implementing corresponding policies, stakeholders can contribute to the growth and prosperity of smallholder dry chilli farmers, fostering sustainable development in the agricultural sector.
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Notes on contributors
K. Nirmal Ravi Kumar
Dr. K. Nirmal Ravi Kumar holding Master’s and Ph.D. degrees in Agricultural Economics, has studied at Acharya N.G. Ranga Agricultural University (ANGRAU). He has a brilliant academic career with specialization in ‘Agricultural Marketing’ both in his post-graduate and doctoral programmes. Dr. Kumar is currently Professor & Head (Agril. Economics) in Agricultural College, Bapatla. He is actively involved both in agricultural research and teaching activities during the past twenty-two years in the ANGRAU. He also worked as Director (Agricultural Marketing) in National Institute of Agricultural Extension Management (MANAGE), Ministry of Agriculture & Farmers’ Welfare, Government of India. He was the recipient of ‘Sri Mocherla Dattatreyulu Gold Medal’ (2013) and ‘State Best Teacher Award’ (2016). Dr. Kumar has written extensively and has to his credit 10 books, and six (6) published articles in reputable journal of higher impact.
Adinan Bahahudeen Shafiwu
Adinan Bahahudeen Shafiwu, is currently a J-Pal African Scholar who has just finished his project on Digitalization of Cocoa Value Chain in Ghana under the DigiFi initiatives. He has worked and participated in J-pal initiatives that involves Randomized Control Trial. As part of his training under J-Pal he participated in both DIWA and Development Methodologies workshops here in Ghana and Morocco-Rabat respectively. He holds a PhD and MPhil in (Agricultural Economics) and also a chartered Health Economics certificates and currently works with the University for Development Studies in the capacity as a lecturer. He is an expert in Adoption Studies, efficiency, welfare and consumption studies. He is into modeling and has deep seated knowledge in econometrics and its models. A good data manager. He has also consulted for Plan International Ghana and Oxfarm on both midline and Baseline survey. He has published over twenty (20) research articles in reputable journals with higher impact. He is Highly regarded for his good leadership, communication, proposal writing, research, and analytical skills. Able to establish, implement and monitor systems for effectiveness and efficiency at organizations.
Y. Prabhavathi
Y. Prabhavathi, currently working as Assistant Professor at Institute of Agribusiness Management (IABM), Acharya N G Ranga Agricultural University (ANGRAU). Her areas of specializations include including agribusiness management, agricultural marketing, analysis of agri value chains, models for rural collectivization among farmers, business modeling in agriculture, entrepreneurship and innovation in the agricultural sector, as well as incubation and assessing business performance. She is a recipient of university level gold medals for her academic performance and has received numerous awards, including the prestigious NABARD Citation for Outstanding Doctoral Thesis. Till date she had authored more than 30 research articles in various national international peer reviewed journals, guided around 20 post graduate students specializing in agribusiness management, developed two training manuals aimed at fostering entrepreneurship skills within the agribusiness and food sectors as well as by authoring two book chapters. She is also serving as a resource person in mentoring agricultural startups in incubation centres and national level entrepreneurship training programmes.