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

Aparajita Goyal | Zendy

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

Author(s) -

Aparajita Goyal

Publication year - 2010

Publication title -

american economic journal applied economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 12.996

H-Index - 82

eISSN - 1945-7782

pISSN - 1945-7790

DOI - 10.1257/app.2.3.22

Subject(s) - interactive kiosk , procurement , business , agribusiness , point (geometry) , the internet , marketing , state (computer science) , agriculture , agricultural economics , economics , geography , computer science , mathematics , geometry , archaeology , algorithm , world wide web , operating system

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 toward an improvement in the functioning of rural agricultural markets. (JEL O13, O18, Q12, Q13)

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