The marketing channel choices of paddy growers and
their subsequent effect on welfare (indicated by quantity, return and prices) are empirically estimated in the
study, conducted in the states of Punjab and Haryana.
Using data from the third Situation Assessment Survey,
the study focuses on households engaged in paddy cultivation. Results reveal that the local market is still the
most prominent marketing channel in rural Punjab
and Haryana. Around 46% of produce is disposed of
through it, and more than 50% of growers opt for the
same. There are significant variations in awareness of
the minimum support price and the price realized after
selling paddy across different categories of land ownership. Government assistance is a major factor in shaping
the marketing channel choices. The findings in the study
indicate a strong link between marketing channel choices
and the welfare of paddy growers. It provides valuable
insights into the dynamics of agricultural marketing in
India and underscores the need for tailored policy interventions to improve the welfare farmers.