A Study on Factors Influencing the Market Participation Decision of Paddy Farmers in Odisha

Abstract

There are maximum number of farmers are marginal and small in Odisha. They face various problems which restrict their way in to market and hinder them to take advantages of marketing opportunities. This research aims to survey the factors affecting the market participation of farmers and target to improve their income and livelihood. The study establishes its novelty in carrying out the research in the paddy farmers of Odisha focusing on all the categories of farmers. Earlier the study focused exclusively on small and marginal farmers across various study areas. The study attempts to transcend the scope of research as well as keeps future scope of research open. Objective of this paper explains the market participation decision of farmers and expresses the vital factors that influence the farmer’s decision to participate in the market in Odisha. To study the relationship between the farmer’s decision to participate in the market and the factors influencing this farmer’s decision, a Probit regression model is used. The study uses primary data collected from 320 farmers of Ganjam, Kalahandi, Bargarh and Mayurbhanj District of Odisha. It has been discovered that the primary elements influencing a farmer's decision to participate in the market are farm size, household labour, amount of income, and farm income. From the standpoints of market engagement, the paper investigates the phenomena of paddy farmers in Odisha. The findings of this study have implications for the issues that must be resolved in order to motivate Odisha's paddy farmers to participate in the market. We propose that in order to promote development and contribute to food security, value addition, and general economic development, the government and policymakers of Odisha should design balanced policies for farmers and manage them appropriately.