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Agro-economic research market imperfections and farm profitability in Gujarat

By: Kalamkar, S.S. and Kapadia, Kalpana.
Material type: materialTypeLabelBookPublisher: Agriculture Situation in India Description: 78(11), Feb, 2022: p.29-41.Subject(s): Farm profitability, Agriculture income, Market imperfection In: Agriculture Situation in IndiaSummary: The economic feasibility of farming is the most important parameter for the development of agriculture and allied sectors which primarily depends on input costs, institutional framework and different government policies. Many studies have highlighted the grim situation of income from agriculture and that too unstable due to various reasons, while no study is found focusing on the market imperfection and farm profitability in India. In view of same, this study was undertaken to fill up this gap in literature and also for use in proper policy formulation towards doubling of farmers’ income. The study was conducted in the state of Gujarat, covering 800 sample households from total sixteen villages of eight agro-climatic zones. The results indicate that farmers sold almost entire produce immediately after the harvest as they need credit for the next crop and that leads to serious constraints in handling and storage of produce for procurement agencies, particularly in rice and wheat. More than 98 percent of the selected households were unsatisfied with sale of crops due to lower rate than market, followed by delayed payments, deductions for loans borrowed, and faulty weighing and grading. About 99 percent of households reported that income generated from farming is not adequate. Thus, there is a need for an efficient marketing system, access to institutional credit and proper storage at village level, and diffusion of information and innovations on production technologies. – Reproduced
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Articles Articles Indian Institute of Public Administration
78(11), Feb, 2022: p.29-41 Available AR127131

The economic feasibility of farming is the most important parameter for the development of agriculture and allied sectors which primarily depends on input costs, institutional framework and different government policies. Many studies have highlighted the grim situation of income from agriculture and that too unstable due to various reasons, while no study is found focusing on the market imperfection and farm profitability in India. In view of same, this study was undertaken to fill up this gap in literature and also for use in proper policy formulation towards doubling of farmers’ income. The study was conducted in the state of Gujarat, covering 800 sample households from total sixteen villages of eight agro-climatic zones. The results indicate that farmers sold almost entire produce immediately after the harvest as they need credit for the next crop and that leads to serious constraints in handling and storage of produce for procurement agencies, particularly in rice and wheat. More than 98 percent of the selected households were unsatisfied with sale of crops due to lower rate than market, followed by delayed payments, deductions for loans borrowed, and faulty weighing and grading. About 99 percent of households reported that income generated from farming is not adequate. Thus, there is a need for an efficient marketing system, access to institutional credit and proper storage at village level, and diffusion of information and innovations on production technologies. – Reproduced

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