Internet Kiosks

Information Technology and Rural Market Performance in Central India

Posted by AnneryanHeatwole on Sep 18, 2009
Information Technology and Rural Market Performance in Central India data sheet 1755 Views
Author: 
Aparajita Goyal
Publication Date: 
Aug 2008
Publication Type: 
Report/White paper
Abstract: 

Can price information improve the functioning of rural markets in ways that benefit farmers? Beginning in October 2000, a private company established internet kiosks and warehouses that provide wholesale price information and an alternative marketing channel to soybean farmers in the central Indian state of Madhya Pradesh. Using a new market-level dataset with spatial geo-coded information, the estimates suggest a significant increase in the monthly wholesale market price of soybeans after the introduction of kiosks, lending support to the predictions of the theoretical model. Moreover, there is a robust increase in area under soy cultivation. The results suggest that information can enhance the functioning of rural markets by increasing the competitiveness of local buyers.