The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)

There is a vigorous debate on liberalization of the heavily regulated agricultural markets in India. A crucial institutional characteristic is the role of state-regulated brokers in wholesale markets. Relying on data from a unique survey in Uttarakhand, a state in North India, we find that regulatio...

Descripción completa

Detalles Bibliográficos
Autores principales: Minten, Bart, Vandeplas, Anneleen, Swinnen, Johan
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2011
Materias:
Acceso en línea:https://hdl.handle.net/10568/154972
_version_ 1855532140985319424
author Minten, Bart
Vandeplas, Anneleen
Swinnen, Johan
author_browse Minten, Bart
Swinnen, Johan
Vandeplas, Anneleen
author_facet Minten, Bart
Vandeplas, Anneleen
Swinnen, Johan
author_sort Minten, Bart
collection Repository of Agricultural Research Outputs (CGSpace)
description There is a vigorous debate on liberalization of the heavily regulated agricultural markets in India. A crucial institutional characteristic is the role of state-regulated brokers in wholesale markets. Relying on data from a unique survey in Uttarakhand, a state in North India, we find that regulations on margins are ineffective, since most brokers charge rates that significantly exceed the regulated ones. We also find that a majority of farmers self-select into long-term relationships with brokers. These relationships allow some of the farmers to interlink credit and insurance markets to the agricultural output market. This interlinkage does not, however, appear to be an instrument for farmer exploitation (since it does not lead to worse inputs, higher interest rates, or lower implicit output prices) but is seemingly an extra service provided by brokers to establish farmer loyalty and thereby ensure future supplies.
format Artículo preliminar
id CGSpace154972
institution CGIAR Consortium
language Inglés
publishDate 2011
publishDateRange 2011
publishDateSort 2011
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1549722025-11-06T06:55:59Z The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand) Minten, Bart Vandeplas, Anneleen Swinnen, Johan agricultural marketing brokering There is a vigorous debate on liberalization of the heavily regulated agricultural markets in India. A crucial institutional characteristic is the role of state-regulated brokers in wholesale markets. Relying on data from a unique survey in Uttarakhand, a state in North India, we find that regulations on margins are ineffective, since most brokers charge rates that significantly exceed the regulated ones. We also find that a majority of farmers self-select into long-term relationships with brokers. These relationships allow some of the farmers to interlink credit and insurance markets to the agricultural output market. This interlinkage does not, however, appear to be an instrument for farmer exploitation (since it does not lead to worse inputs, higher interest rates, or lower implicit output prices) but is seemingly an extra service provided by brokers to establish farmer loyalty and thereby ensure future supplies. 2011 2024-10-01T14:05:15Z 2024-10-01T14:05:15Z Working Paper https://hdl.handle.net/10568/154972 en https://hdl.handle.net/10568/160356 Open Access application/pdf International Food Policy Research Institute Minten, Bart; Vandeplas, Anneleen; Swinnen, Johan. 2011. The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand). IFPRI Discussion Paper 1143. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/154972
spellingShingle agricultural marketing
brokering
Minten, Bart
Vandeplas, Anneleen
Swinnen, Johan
The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)
title The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)
title_full The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)
title_fullStr The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)
title_full_unstemmed The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)
title_short The broken broker system? Transacting on agricultural wholesale markets in India (Uttarakhand)
title_sort broken broker system transacting on agricultural wholesale markets in india uttarakhand
topic agricultural marketing
brokering
url https://hdl.handle.net/10568/154972
work_keys_str_mv AT mintenbart thebrokenbrokersystemtransactingonagriculturalwholesalemarketsinindiauttarakhand
AT vandeplasanneleen thebrokenbrokersystemtransactingonagriculturalwholesalemarketsinindiauttarakhand
AT swinnenjohan thebrokenbrokersystemtransactingonagriculturalwholesalemarketsinindiauttarakhand
AT mintenbart brokenbrokersystemtransactingonagriculturalwholesalemarketsinindiauttarakhand
AT vandeplasanneleen brokenbrokersystemtransactingonagriculturalwholesalemarketsinindiauttarakhand
AT swinnenjohan brokenbrokersystemtransactingonagriculturalwholesalemarketsinindiauttarakhand