Quarterly Journal of International Agriculture No. 1/07
Institutional innovations for improving smallholder participation in high-value agriculture: a case of fruit and vegetable growers’ associations in India
Pratap S. Birthal and P.K. Joshi
National Centre for Agricultural Economics and Policy Research, New
Delhi, India
Abstract
Indian agriculture is gradually diversifying towards high-value food
commodities. This is expected to benefit millions of farmers especially
smallholders, who rely on agriculture for their livelihood.
Smallholders are efficient in production of high-value commodities but
are constrained to expand their scale of production due to a lack
market access and higher transaction costs. This paper examines role of
institutions in facilitating smallholders’ access to markets and
reducing their transaction costs. The study uses information from a
survey of vegetable producers associated with fruit and vegetable
growers’ associations. The evidence indicates that innovative
institutions contribute in reducing transaction costs and augmenting
farm profits. Smallholders share larger benefits from their
participation in such innovative institutions. Public policies should
create an enabling environment for up-scaling and strengthening of such
institutions so that smallholders actively participate in high-value
agriculture.
Keywords: smallholders, high-value agriculture, growers’ association, transaction costs, revenue
JEL: Q 120, Q 130, D 230, Q 180
Vol. 46 (2007), No. 1: 49-67