Field Survey, Observations and Farmer Profile

This chapter presents the design and results of the field survey including the farmer profile and various field observations. The aim is to understand the socioeconomic and exchange-related issues of farmer participation in the market. Six rounds of field survey were undertaken between December 2014 and August 2015, and data from 199 farmers were collected and analyzed. Gujarat (56%) contributes maximum to the sample followed by Madhya Pradesh (26%) and Rajasthan (18%). Small and medium farmers account for a largest share in the sample. The survey examined the association of farmers with various market agencies involved in spot and futures markets, and the experience of direct and indirect participation in the interventions of aggregators and Farmer Producer Companies in futures and forward markets is examined. It is found that about 41% are aware of futures trading, but the rest are not aware of futures markets. Though they are aware of price information boards installed in the regulated market yards, they show inability to interpret the information well and understand the relevance. The study included cell phone usage as an explanatory variable for farmer participation. It is found that about 50% farmers own a mobile and 30% of them access futures and spot price information through the Reuters Market Light SMS/in-call service. Landholding, education level, farm income, ownership of livestock and farm machinery, among others are examined in the context of futures markets. The degree of association and level of satisfaction with agencies/institutions are also examined. Most of the farmers have some association with development organizations, cooperatives, Farmer Producer Companies, regulated market officials, and traders and show good satisfaction with farmer organizations—cooperatives and producer companies. Brokers, warehousing companies, and related financial institutions do not show reach or service delivery in rural areas. The sample farmers grow at least one cash crop, e.g., cotton, soybean, rapeseed-mustard, coriander, and guar seed, but access to storage or financing is minimal. There is considerable heterogeneity in the market participation.