Information, Direct Access to Farmers, and Rural Market Performance in Central India

This paper estimates the impact of a
change in procurement strategy of a private buyer in the
central Indian state of Madhya Pradesh. Beginning in October
2000, internet kiosks and warehouses were established that
provide wholesale price information and an alternative
marketing channel to soy farmers in the state. Using a new
market-level dataset, the estimates suggest a significant
increase in soy price after the introduction of kiosks,
supporting the predictions of the theoretical model.
Moreover, there is a robust increase in area under soy
cultivation. The results point towards an improvement in the
functioning of rural agricultural markets.