Do Supply Chains Work for Farmers? A Perception-based Analysis of Horticultural Logistics and Price Discovery

Abstract

India is a horticultural-based agricultural economy, particularly in the hill states such as Himachal Pradesh, where the fruits and vegetables feed the small and medium farmers. Nevertheless, the success of horticultural supply chains is questionable, especially the ability of the farmers to access post-harvest infrastructure and reasonable prices. In this context, existing research has focused mostly on the problem of logistics and technology, neglecting the perspective of farmers themselves regarding supply chain performance. Therefore, this research article uses a perception-based model to evaluate the role of four supply chain elements, namely, grading and sorting, cold storage, transportation, and market price realization, in influencing the perceptions of farmers about the effectiveness of the entire supply chain. The findings are based on primary data of 500 horticulturists in the area of Shimla, Kullu, and Kinnaur districts, and it is found that the largest impact is positive in relation to the use of grading and cold storage facilities, with only a small influence on transportation. Market-pricing mechanisms are also fair and transparent, and this increases the trust and satisfaction of farmers. The findings support the significance of enhancing post-harvest infrastructure and enhancing the pricing discovery systems to enhance confidence in the supply chains in horticulture. The research incorporates the farmers’ view, facilitates a more comprehensive view of agricultural logistics, and offers realistic information to policymakers and stakeholders in the agribusiness industry to enhance the efficiency and sustainability of the hill horticulture systems.