Preferred Channel Choices in Vegetable Marketing: Role of Macro and Micro Environmental Factors in Odisha

Abstract

The globalization of agriculture has opened new opportunities, challenges and stiffer competition in India. This paper explores and evaluates various macro and micro factors influencing the marketing channel choices made by the vegetable farmers in Odisha. Responses were collected from 323 vegetable farmers and 110 commission agents, and 192 retailers across five districts of Odisha. Data were analyzed using SPSS to confirm reliability, validity and data reduction. AMOS was used to design the structural equation model. Access to market knowledge has a positive sign for both organized and unorganized market choices, which is consistent with the hypothesis. Hence, the value suggests that increasing market knowledge can increase market participation. The improvement in practices and expertise in grading also shows an increase in the involvement of both organized and unorganized markets. Given these marketing challenges, this study suggests improving emerging farmers' participation in the export markets.