Agricultural Market Access and Farm Income Nexus
This chapter provides an explanation as to whether agricultural market access has any relationship with farm income. A plethora of studies confirm that rural infrastructure is a sine qua non for significantly improving agricultural production. Recent literature indicates that in addition to factors like human capital, credit markets, extension services and technology, the presence of reliable infrastructures such as roads and market sites increase the efficiency of both marketing and production by bringing down the transaction costs and ensuring more competitive pricing conditions in marketing than would occur in their absence. Making a departure from earlier studies by taking 235 Indian districts as the unit of analysis, chapter 5 attempts to provide an empirical basis for the perceived nexus between market access, agriculture infrastructure and value of agriculture output (VAO) from the Indian perspective using regression analysis.