Socio Economic Status of Smallholder Farmers Market Participation Decision in Anuradhapura District, dry zone of Sri Lanka

Abstract

The emergence of supermarkets and rural development has had a significant economic impact on agriculture, particularly for smallholders. However, supplying high-quality fruits and vegetables to supermarkets presents several challenges, including timing, quality, safety, and quantity. These issues need to be addressed in order to effectively meet the demands of supermarkets. Additional variables such as affection and dichotomous choice for market involvement were taken into account. The objective of the research was to determine the elements that influence market involvement, draw comparisons between Supermarket and Traditional Farmers, and examine the income generation of farmers who supply to supermarkets. The study focuses on smallholder farmers supplying to both supermarkets and traditional markets within the Anuradhapura district. The samples were obtained from five regions of the Anuradhapura district, namely Nochchiyagama, Galnawa, Anuradhapura, Madawachchiya, and Thambuthegama, using the stratified random sampling technique. A questionnaire was created and administered through face-to-face interviews with 100 farmers from the Anuradhapura district. The factors are analyzed with Probit regression by using stat13 software. The Probit model was utilized to analyze dichotomous or binary outcome variables, while descriptive analysis was employed to examine income generation. Factors that have a positive impact increase interest in market participation, while negative factors reduce it. In addition, technical motivation, collective action, and farmers' production capacity are factors that increase market participation