Supply Chain Council of European Union | Scceu.org
Procurement

Does Public Procurement Benefit Paddy Farmers? : Evidence from Eastern India

This paper investigates the impact of public procurement on paddy farmers in Bihar. Whether farmers’ access to public procurement agencies led to higher price realisation by them is examined here. The paper used a comprehensive telephonic survey of 1,976 farm households in eastern India (Bihar, eastern Uttar Pradesh, Jharkhand, Odisha, and West Bengal) and employed an endogenous switching regression model to estimate the impact of public procurement on farm harvest price of paddy. The findings reveal that farmers gain by selling to public agencies. However, they are unable to receive the minimum support price.

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