Value Chain Driven Human Capital Development : An Evidence from Agricultural Value Chains in Karnataka

Abstract

Human capital development (HCD) among farmers is a fundamental issue for any developing agrarian economy. Though education is the prime factor influencing human development, the education provided by governments to the rural population alone cannot ensure HCD. It is proved in India by efficient working models like ICT's e-Choupal and modern agriculture with contract farming that well governed supply chain practice, development of value chain to serve different customers and transparent interface between markets and the farmer provide best opportunity for farmers to apply their knowledge (tacit and acquired) for their social and economic wellbeing, leading to real HCD. The present study explores whether existing agricultural value chains induce uniform HCD among farmers of paddy, dry chilli, sugarcane and marigold which are being cultivated and traded in varied formats in Karnataka. The outcome of the study confirms that efficient value chain that provides free and fair opportunities for farmers to trade at farm gate is an important factor that drives HCD among farmers.