New markets for smallholders in India: exclusion, policy and mechanisms

Abstract

The gradual withdrawal of the state from agricultural markets and the emphasis on the role of the private sector has meant the entry of corporate and multinational agencies through the opening up of procurement, wholesale trade and retailing. This paper examines the new corporate interface with primary producers in a small farmer-dominated economy. It contextualises the issue from the perspective of smallholders. It examines contract farming arrangements to show the exclusion of small producers from the retail chain; the performance of modern (supermarket) food retail chains in India and their spread and penetration into, or interface with, farmers; policy and regulatory issues; and some of the mechanisms and institutional innovations for more inclusive agricultural marketing systems.