Supermarketisation of vegetables in India

Most of the high-value commodities such as vegetables are very perishable and are highly prone to production and market risks, which may act as deterrent to farmers participation in high value agriculture. Local markets for high value commodities are thin and marketable surplus of individual small holder’s is too small to be traded remuneratively in distant urban markets due to high transaction costs. Their prices are volatile and fall drastically even with a small increase or decrease in their above normal market arrival. Besides, farmers are constrained by lack of access to improved technology, quality inputs, information and credit. Institutions like cooperatives, contract farming and grower’s associations are considered to improve producer’s access to markets, minimize transaction costs and alleviate marketing constraints. Institutional innovations in marketing enhance their access to market quality inputs, improved technology, information, and services which eventually lead to improvement in productivity and reduction in marketing and transaction costs.