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.