Marketing Performance of Potato and the Determinants Influencing Farmers' Choice of Marketing Channels in Himachal Pradesh

Abstract

Agriculture remains the backbone of India's economy, with farmers playing a pivotal role in its sustenance. However, the farmers encounter numerous challenges, including limited market access and insufficient market information, negatively impacting their marketing performance. Therefore, this study aimed to scrutinise the marketing performance and factors influencing farmers' choice of marketing channels for potatoes in Himachal Pradesh. The study gathered primary data through structured questionnaires administered via interviews, targeting a sample of 180 farmers selected through a simple random sampling method. Descriptive statistics and the Acharya approach were employed to analyse the marketing efficiency, while a multinomial logistic regression model was utilised to ascertain the factors influencing farmers' marketing channel choices. The findings revealed that farmers who directly sold their potatoes to consumers demonstrated superior marketing performance compared to those who engaged with market intermediaries like local traders, co-operative societies, and wholesalers. Furthermore, the study identified farm income, farming experience, market distance, and market information as significant determinants of farmers' marketing channel choices. These findings underscore the necessity for policymakers to implement interventions that enhance farmers' marketing skills, facilitate market access, improve negotiation power, and ultimately lead to increased incomes, improved livelihoods, higher-quality produce for consumers, and a more efficient and sustainable food system.