Information, Direct Access to Farmers, and Rural Market Performance in Central India

This paper estimates the impact of a change in procurement strategy of a private buyer in the central Indian state of Madhya Pradesh. Beginning in October 2000, internet kiosks and warehouses were established that provide wholesale price information and an alternative marketing channel to soy farmers in the state. Using a new market-level dataset, the estimates suggest a significant increase in soy price after the introduction of kiosks, supporting the predictions of the theoretical model. Moreover, there is a robust increase in area under soy cultivation. The results point towards an improvement in the functioning of rural agricultural markets.

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Bibliographic Details
Main Author: Goyal, Aparajita
Language:English
Published: 2010-05-01
Subjects:ACCESS TO INFORMATION, ADVERTISING, AGRIBUSINESS, AGRICULTURAL MARKETING, AGRICULTURAL MARKETS, AGRICULTURAL PRODUCE, AGRICULTURAL PRODUCTION, AGRICULTURE, ALTERNATIVE CROPS, ANIMAL FEED, AUCTION, AUCTION PROCESS, AVERAGE PRICE, BUYER, BUYERS, CARTS, CASH CROPS, CEREALS, COMMODITY, COMPETITIVE EQUILIBRIUM, COMPETITIVE PRICE, COMPETITIVE PRICES, COMPETITIVENESS, COST INCREASE, COTTONSEED, CROP, CROP PRICES, CROP PRODUCTION, CROPPING, CROPPING SEASONS, CROPS, CULTIVATION, CURRENCY EXCHANGE, DATES, DEMOGRAPHIC INFORMATION, DIRECT MARKETING, DIRECT SALE, E-MAIL, EQUIPMENT, EXCHANGE RATES, FAIR, FARM, FARM LAND, FARMER, FARMERS, FARMING, FARMING TECHNIQUES, FERTILIZERS, FISHERIES, GOVERNMENT EMPLOYEE, GRAIN, GROUNDNUT, GROUNDNUT PRODUCTION, INFORMATION PROVISION, INFORMATION SERVICES, INFORMATION TECHNOLOGIES, INNOVATION, INSTALLATION, INTERNATIONAL MARKET, LICENSE, MAIZE, MAIZE PRODUCTION, MARKET CONDITIONS, MARKET ECONOMY, MARKET OPPORTUNITIES, MARKET PRICE, MARKET SHARE, MARKET TOWN, MARKET TOWNS, MARKETING, MARKETING BOARD, MEAL, MIDDLEMEN, MILLET, MINIMUM PRICE, MISSING DATA, MOBILE PHONES, NEW MARKET, OILSEEDS, ONLINE PRICE, OPEN AUCTIONS, ORGANIC AGRICULTURE, PLANTING, PRICE COMPARISON, PRICE COMPETITION, PRICE EFFECT, PRICE INFORMATION, PRICE TRENDS, PRIVATE SECTOR, PROCUREMENT, PROCUREMENT PROCESS, PULSES, QUALITY GRADING, RESULT, RESULTS, RETAIL, RICE PRODUCTION, RURAL AREAS, RURAL PRODUCERS, SALE, SALES, SEARCH, SEED, SITES, SOIL QUALITY, SORGHUM, SOYBEAN, SOYBEAN PRICES, SOYBEANS, SPOT MARKETS, SPREAD, STORAGE FACILITIES, SUPPLY CHAIN, SUPPLY CURVE, SURPLUS, TECHNOLOGICAL INNOVATIONS, TIME PERIOD, TIME PERIODS, TOTAL SALES, TRACTORS, TRANSACTION, TROPICAL AGRICULTURE, VOLUME, WAREHOUSE, WAREHOUSES, WEB, WHEAT, WHOLESALE PRICE, WHOLESALE PRICES, WHOLESALERS, WORLD PRICES,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100521152246
https://hdl.handle.net/10986/3800
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Summary:This paper estimates the impact of a change in procurement strategy of a private buyer in the central Indian state of Madhya Pradesh. Beginning in October 2000, internet kiosks and warehouses were established that provide wholesale price information and an alternative marketing channel to soy farmers in the state. Using a new market-level dataset, the estimates suggest a significant increase in soy price after the introduction of kiosks, supporting the predictions of the theoretical model. Moreover, there is a robust increase in area under soy cultivation. The results point towards an improvement in the functioning of rural agricultural markets.