Unravelling the Constraints Associated with Groundnut Marketing: A Comprehensive Review

Abstract

This review identifies and analyzes constraints in groundnut marketing systems, particularly for smallholder farmers in developing regions. It proposes strategies to enhance efficiency, profitability, and sustainability, thereby improving farmers' livelihoods. A comprehensive literature review of academic journals, policy reports, and case studies identifies key constraints in groundnut marketing. The review utilizes a structured conceptual framework that encompasses supply chain structure, market dynamics, institutional and policy environments, socioeconomic factors and draws on theoretical foundations such as Transaction Cost Economics, Value Chain Analysis, Market Structure-Conduct-Performance Paradigm, Rural Livelihoods Framework, and Supply Chain Risk Management. The study also applied economic and supply chain management theories to groundnut marketing, emphasizing the relevance of Transaction Cost Economics, Value Chain Analysis, and the Market Structure-Conduct-Performance Paradigm. This theoretical framework can be adapted for other agricultural commodities facing similar constraints. The review identifies critical constraints in groundnut marketing, including fluctuating market prices, inadequate storage facilities, limited access to credit, lack of market information, and high transaction costs. These are exacerbated by poor infrastructure, fragmented supply chains, and socioeconomic barriers, indicating the need for holistic, context-specific interventions. The review suggests practical interventions including investment in infrastructure development, enhancing market information accessibility through digital platforms, fostering farmer cooperatives, and implementing price stabilization mechanisms. These measures can empower smallholder farmers, improve market access, and increase profitability. Policymakers, development agencies, and private sector stakeholders can leverage these insights to formulate targeted support programs for groundnut farmers.