Factors influencing paddy farmers' choice of marketing channels: study of a nationally representative survey from India

Purpose This study aims to examine the factors that impact the choice of paddy marketing channels in India at the farm level and household contingencies. Design/methodology/approach Employing multinomial logistic regression, the analysis utilizes the National Sample Survey Office (NSSO) 77th round Situation Assessment Survey (SAS) data from the 2018 to 2019 period, specifically for the paddy Kharif season, to determine the factors determining the choice of marketing channels. The significant independent variables include minimum support price (MSP) awareness, access to and adoption of technical advice, input agency, social group, farm size of farmers, region, age and education of the household head. Findings Awareness of MSP and adoption of technical advice from experts can enhance the probability of selecting government channels for paddy. The reliance on government input agencies has a favourable impact on the choice of government channels. Government channels are more likely preferred by higher social groups and those with higher land-holdings. There has been a state-wise variation in access to regulated marketing channels for paddy. Research limitations/implications Transaction cost associated with marketing channel choice is an important factor, not incorporated in this study due to the unavailability in the NSS data. Originality/value The research uses the latest unit-level data of the NSSO 77th round, published by the Ministry of Statistics and Programme Implementation (MoSPI), the Government of India.