Institute for Social and Economic Change

Working Paper: 455

How the Modern Food Retail Chains Emerging as Alternative
Channels of Agricultural Marketing? Evidence from Karnataka

Kedar Vishnu
Parmod Kumar
A V Manjunathai



The study focuses on identifying factors influencing the quantity of produce sold to Modern Organised Retail Chains (MORC) and determinants of participation in a particular (MORC) by marginal and small farmers. In order to achieve this goal, primary data were collected from 160 tomato growers located in Chikkaballapur district of Karnataka. Data was analysed using multiple regression technique. Results demonstrate that area under tomato, per acre yield, procurement prices from MORC, access to technical help and having their own vehicle for transportation were found significantly affecting quantity sold to MORC. On the opposite side, an increased rejection rate, increased distance of collection centres from farmers’ fields, and tomato prices at APMC were found influencing farmers’ decision to the reverse side for participation. Empirical results of the multinomial logit model shows that Reliance Fresh has a tendency to prefer large farmers who can supply better quantity produce compared with TESCO and More collection centres. The negative sign of area, having access to technical help, transportation cost and number of bore wells led to a higher probability of farmers participating in Reliance Fresh collection centres as compared to More and TESCO.

Working Papers