Indian Journal of Economics and Development

Open Access Open Access  Restricted Access Subscription Access

Value Chain Up-Gradation Through Collective Action: A Step Towards Inclusive Growth


Affiliations
1 Institute of Agricultural Economics and Social Sciences, Division of Horticultural Economics, Humboldt University of Berlin, Robert Koch-Platz 4, D-10099, Germany
 

Objectives: Small and marginal farmers are being excluded from emerging innovative models owing to the high transaction cost in aggregation, poor quality and information asymmetry among the farmers. There are several opportunities to upgrade the traditional value chains leading to high price realization among the farmers. In the present study, Organic Fruits and Vegetable value chains were analyzed to suggest the strategies for value chain upgrading (Product, Process and Functional upgrade) through collectivization for inclusive growth.

Method: The survey was conducted in Karnataka state in South India, by involving 200 farmers through purposive random sampling drawn from an official list of certified organic farmers followed by interview with 14 other value chain actors, focus group & key informant interviews, direct observation and documents to obtain necessary information.

Findings: Results revealed that, there are five distinct market linkages prevailing involving informal contracts along the chain. Great potential for process and product upgrading through collective action leading to higher price realization and social capital formation among small and marginal farmers.

Application: Results have a potential policy and practical implications for directing Institutions to help smallholder producer organizations for the improvement of organic fruit and vegetable production and processing activities for inclusive agricultural growth.


Keywords

Value Chain Upgrading, Collective Action, Inclusive Growth.
User
Notifications

  • Agriculture for Development: World Development Report. World Bank. 2008; 1-386.

  • T. Reardon, C.P. Timmer. Five inter-linked transformations in the asian agrifood economy: food security implications. Global Food Security. 2014; 3(2), 108-117.

  • S. Birthal Pratap, J.P. Kumar, D. Roy, A. Thorat. Diversification in Indianagriculture towards high-value crops. International Food Policy Research Institute. 2007; 1-40.

  • N. Devakumar. Organic farming Stake Holders Directory of Karnataka. Book published by Karnataka State Department of Agriculture. 2014; 1-149.

  • S. Singh. Spencer’s Retail. M Harper, Inclusive Value Chains: A Pathway Out of Poverty. World Scientific, Singapore. 2010; 81-93.

  • F. Eyhorn. Organic farming for sustainable livelihoods in developing countries?: The case of cotton in India: vdf Hochschulverlag AG. 2007; 1-3.

  • N. Scialabba, C. Hattam. Organic agriculture, environment and food security: Food & Agriculture Org. Business and Economics. 2002; 1-252.

  • D.S. Mahendra. Small farmers in India: Challenges and opportunities. Indira Gandhi Institute of Development Research, Mumbai, India. 2012; 1-37.

  • S. Sukhpal. Marketing channels and their implications for smallholder farmers in India. The transformation of agri-food systems: Globalization, supply chains, and smallholder farmers. 2008; 279-310.

  • R.B. Zoellick. World development reports: Agriculture for development-overview. 2008; 1-32.

  • H. Schmitz. Value chain analysis for policy-makers and practitioners. International Labour Organization. 2005; 1-81.

  • R. Kaplinsky, M. Morris. A handbook for value chain research. IDRC Ottawa. 2001.

  • P. Gibbon. Upgrading primary production: a global commodity chain approach. World development. 2001; 29(2), 345-363.

  • A. Springer-Heinze. Valuelinks manual: The methodology of value chain promotion. GTZ Eschborn. 2007.

  • G. Gereffi, J. Humphrey, R. Kaplinsky. Introduction: Globalisation, value chains and development. IDS bulletin. 2001; 32(3), 1-8.

  • J. Humphrey, H. Schmitz. Chain governance and upgrading: taking stock. Local enterprises in the global economy: issues of governance and upgrading. 2004.

  • J. Humphrey. Opportunities for SMEs in developing countries to upgrade in a global economy. International Labour Office. 2003; 1-38.

  • J. Humphrey, O. Memedovic. Global value chains in the agrifood sector. United Nations [UN] Industrial Development Organization. 2006.

  • J. Humphrey, H. Schmitz. How does insertion in global value chains affect upgrading in industrial clusters? Regional studies. 2002; 36(9), 1017-1027.

  • C. Poulton, A. Dorward, J. Kydd. The future of small farms: New directions for services, institutions, and intermediation. World development. 2010; 38(10), 1413-1428.

  • R. Kaplinsky. Competitions policy and the global coffee and cocoa value chains. UNCTAD, Geneva. 2004.

  • H. Markelova, E. Mwangi. Collective action for smallholder market access: evidence and implications for Africa. Review of policy research. 2010; 27(5), 621-640.

  • S. Ponte, P. Gibbon. Quality standards, conventions and the governance of global value chains. Economy and Society. 2005; 34(1), 1-31.

  • A. Shepherd. Approaches to linking producers to markets: Food & Agriculture Organisation. 2007

  • J. Neilson, B. Pritchard. Value chain struggles: institutions and governance in the plantation districts of South India. John Wiley & Sons. 2011; 1-15.

  • B. Selwyn. Institutions, upgrading and development: Evidence from North East Brazilian export horticulture. Competition & Change. 2008; 12(4), 377-396.

  • R. Muradian, C. Chagwiza, W. Tessema, R. Ruben. Pro-poor value chain development, upgrading and inclusion: Drawing theoretical insights from the field. 2011.

  • J. Mitchell, C. Coles, J. Keane. Upgrading along value chains: strategies for poverty reduction in Latin America. Overseas development institute (ODI). 2009; 1-4.

  • N. Ashraf, X. Giné, D.S. Karlan. Finding missing markets (and a disturbing epilogue): Evidence from an export crop adoption and marketing intervention in Kenya. World Bank Policy Research Working Paper Series. 2008; 1-40.

  • F. Eyhorn, P. Mäder, M. Ramakrishnan. The impact of organic cotton farming on the livelihoods of smallholders. Evidence from the Maikaal bioRe poject in central India. Forschungsinstitut für biologischen Landbau (FiBL) CH-Frick. 2005; 1-75.

  • H. Schmitz, K. Nadvi. Industrialclusters in developing countries-clustering and industrialization: introduction. World development. 1999; 27(9), 1503-1514.

  • B.L.E. Walker. Sisterhood and seine-nets: Engendering development and conservation in Ghana's marine fishery. The Professional Geographer. 2001; 53(2), 160-177.

  • J. Aranda, C. Morales. Poverty alleviation through participation in fair trade offee networks: The case of CEPCO, Oaxaca, Mexico. Report prepared for Fair Trade Research Group, Colorado State University, Fort Collins, USA. 2002.

  • C. Bacon. Confronting the coffee crisis: can fair trade, organic, and specialty coffees reduce small-scale farmer vulnerability in northern Nicaragua? World development. 2005; 33(3), 497-511.

  • L.T. Raynolds, D. Murray, P. Leigh Taylor. Fair trade coffee: building producer capacity via global networks. Journal of international development. 2004; 16(8), 1109-1121.

  • D. Roy, A. Thorat. Success in high value horticultural export markets for the small farmers: The case of Mahagrapes in India. World development. 2008; 36(10), 1874-1890.


Abstract Views: 233

PDF Views: 232




  • Value Chain Up-Gradation Through Collective Action: A Step Towards Inclusive Growth

Abstract Views: 233  |  PDF Views: 232

Authors

Ravi Nandi
Institute of Agricultural Economics and Social Sciences, Division of Horticultural Economics, Humboldt University of Berlin, Robert Koch-Platz 4, D-10099, Germany
V. G. Nithya
Institute of Agricultural Economics and Social Sciences, Division of Horticultural Economics, Humboldt University of Berlin, Robert Koch-Platz 4, D-10099, Germany
Wolfgang Bokelmanna
Institute of Agricultural Economics and Social Sciences, Division of Horticultural Economics, Humboldt University of Berlin, Robert Koch-Platz 4, D-10099, Germany

Abstract


Objectives: Small and marginal farmers are being excluded from emerging innovative models owing to the high transaction cost in aggregation, poor quality and information asymmetry among the farmers. There are several opportunities to upgrade the traditional value chains leading to high price realization among the farmers. In the present study, Organic Fruits and Vegetable value chains were analyzed to suggest the strategies for value chain upgrading (Product, Process and Functional upgrade) through collectivization for inclusive growth.

Method: The survey was conducted in Karnataka state in South India, by involving 200 farmers through purposive random sampling drawn from an official list of certified organic farmers followed by interview with 14 other value chain actors, focus group & key informant interviews, direct observation and documents to obtain necessary information.

Findings: Results revealed that, there are five distinct market linkages prevailing involving informal contracts along the chain. Great potential for process and product upgrading through collective action leading to higher price realization and social capital formation among small and marginal farmers.

Application: Results have a potential policy and practical implications for directing Institutions to help smallholder producer organizations for the improvement of organic fruit and vegetable production and processing activities for inclusive agricultural growth.


Keywords


Value Chain Upgrading, Collective Action, Inclusive Growth.

References