Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India
Transaction costs are incurred while conducting a transaction through an exchange in the open market. New institutional economics focuses on transaction costs and the institutions involved in their reduction. This study compares the transaction costs incurred by Farmer Producer Company (FPC) members...
| Autores principales: | , , , , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Horizon E-Publishing Group
2024
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/177083 |
| _version_ | 1855522915683926016 |
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| author | Divya, KM Kumar, D Suresh Vidhyavathi, A Babu, Suresh Chandra Uma, K Kannan, Balaji Kalarani, MK |
| author_browse | Babu, Suresh Chandra Divya, KM Kalarani, MK Kannan, Balaji Kumar, D Suresh Uma, K Vidhyavathi, A |
| author_facet | Divya, KM Kumar, D Suresh Vidhyavathi, A Babu, Suresh Chandra Uma, K Kannan, Balaji Kalarani, MK |
| author_sort | Divya, KM |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Transaction costs are incurred while conducting a transaction through an exchange in the open market. New institutional economics focuses on transaction costs and the institutions involved in their reduction. This study compares the transaction costs incurred by Farmer Producer Company (FPC) members and non-members in Kerala and identifies the factors affecting these transaction costs. The study revealed no significant difference in the transaction costs incurred by FPC members and non-members. This was mainly due to the significant and higher opportunity cost of time spent on information and decision-making by FPC members compared to non-members, which surpassed the lower costs incurred for selling their farm produce by FPC members compared to non-members. Based on this study, we recommend that FPCs concentrate more on the bottom-up collectivization of individual farmers to form large business organizations that facilitate market access for small and marginal farmers and reduce transaction costs. |
| format | Journal Article |
| id | CGSpace177083 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2024 |
| publishDateRange | 2024 |
| publishDateSort | 2024 |
| publisher | Horizon E-Publishing Group |
| publisherStr | Horizon E-Publishing Group |
| record_format | dspace |
| spelling | CGSpace1770832025-10-26T13:00:53Z Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India Divya, KM Kumar, D Suresh Vidhyavathi, A Babu, Suresh Chandra Uma, K Kannan, Balaji Kalarani, MK innovation farmers transaction costs agriculture farmers organizations marketing Transaction costs are incurred while conducting a transaction through an exchange in the open market. New institutional economics focuses on transaction costs and the institutions involved in their reduction. This study compares the transaction costs incurred by Farmer Producer Company (FPC) members and non-members in Kerala and identifies the factors affecting these transaction costs. The study revealed no significant difference in the transaction costs incurred by FPC members and non-members. This was mainly due to the significant and higher opportunity cost of time spent on information and decision-making by FPC members compared to non-members, which surpassed the lower costs incurred for selling their farm produce by FPC members compared to non-members. Based on this study, we recommend that FPCs concentrate more on the bottom-up collectivization of individual farmers to form large business organizations that facilitate market access for small and marginal farmers and reduce transaction costs. 2024-10-24 2025-10-14T17:48:48Z 2025-10-14T17:48:48Z Journal Article https://hdl.handle.net/10568/177083 en Open Access Horizon E-Publishing Group Divya, KM; Kumar, D Suresh; Vidhyavathi, A; Babu, Suresh Chandra; Uma, K; et al. 2024. Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India. Plant Science Today 11(sp4): 1-8. https://doi.org/10.14719/pst.5866 |
| spellingShingle | innovation farmers transaction costs agriculture farmers organizations marketing Divya, KM Kumar, D Suresh Vidhyavathi, A Babu, Suresh Chandra Uma, K Kannan, Balaji Kalarani, MK Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India |
| title | Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India |
| title_full | Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India |
| title_fullStr | Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India |
| title_full_unstemmed | Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India |
| title_short | Are institutional innovations helpful in reducing transaction costs? An empirical analysis of agri-based Farmer Producer Companies (FPCs) in Kerala, India |
| title_sort | are institutional innovations helpful in reducing transaction costs an empirical analysis of agri based farmer producer companies fpcs in kerala india |
| topic | innovation farmers transaction costs agriculture farmers organizations marketing |
| url | https://hdl.handle.net/10568/177083 |
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