The Potato Value Chain and Benefits of Cold Storages: Evidence from Bihar (India)

52 Pages Posted: 10 Mar 2014

See all articles by Bart Minten

Bart Minten

International Food Policy Research Institute (IFPRI) - CGIAR Consortium

Thomas Reardon

Michigan State University - Department of Agricultural Economics

Krishna M. Singh

Dr. Rajendra Prasad Central Agricultural University

Rajib Kumar Sutradhar

Jawaharlal Nehru University

Date Written: December 9, 2010

Abstract

The Indian government has provided large subsidies to stimulate the take-off of the cold storage sector. However, the impact of this policy is not well understood. In a case study of the potato sector in Bihar, we find that there have been dramatic increases and rapid up-scaling of cold storages, seemingly driven by these government subsidies among others. While availability has improved, we further find that the subsidies do not show up in lower storage costs for the farmer. Wealthier farmers participate more directly and relatively more in cold storages, especially towards the commercialization of potatoes. Small farmers benefit relatively more indirectly, i.e. through the higher prices in the harvest period, as well through the cheaper storage of seed potatoes. However, a more competitive environment for the cold sector in Bihar seems called for as to drive down the relatively high cost of storage as well as to improve services delivery in input, output, and financial markets from these cold storages that especially the smaller farmers might benefit from.

Keywords: Potato, Cold Storages, Agricultural policy, Bihar, India

JEL Classification: O13, O14, O32, Q10, Q11, Q12, Q13

Suggested Citation

Minten, Bart and Reardon, Thomas A. and Singh, Krishna M. and Sutradhar, Rajib Kumar, The Potato Value Chain and Benefits of Cold Storages: Evidence from Bihar (India) (December 9, 2010). Available at SSRN: https://ssrn.com/abstract=2406539 or http://dx.doi.org/10.2139/ssrn.2406539

Bart Minten

International Food Policy Research Institute (IFPRI) - CGIAR Consortium ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Thomas A. Reardon

Michigan State University - Department of Agricultural Economics ( email )

East Lansing, MI 48824
United States
517-355-1521 (Phone)
517-432-1800 (Fax)

Krishna M. Singh (Contact Author)

Dr. Rajendra Prasad Central Agricultural University ( email )

Pusa
Samastipur
Pusa-Samastipur, Bihar, Bihar 848125
India
+91-9431060157 (Phone)
+91-6274-240251 (Fax)

HOME PAGE: http://www.rpcau.ac.in/

Rajib Kumar Sutradhar

Jawaharlal Nehru University ( email )

Vasant Vihar
New Delhi, DE Delhi 110067
India

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