Factors determining the choice of marketing diversification for principal crops of Punjab

KAMAL DEV; VINOD NAIK

doi:10.61475/JFS.2025.v38i2.16

KAMAL DEV Department of Economics, Sapt-Sindhu Parisar-I Dehra Central University of Himachal Pradesh - 177 101, India
VINOD NAIK Department of Economics, Sapt-Sindhu Parisar-I Dehra Central University of Himachal Pradesh - 177 101, India

DOI: https://doi.org/10.61475/JFS.2025.v38i2.16

Keywords: Agricultural policy, Logit regression, Marketing diversification, Principal crops, Socio economic factors

Abstract

This study aims to identify the factors that determining farmers’ choice of marketing diversification for the keycrops in Punjab—wheat, moong, rapeseed, mustard and cotton. The research is based on primary data collected from 320farmers through a multistage stratified random sampling method across these four principal crops. A logit regression modelwas employed to analyse the factors affecting the farmers choice of marketing channels diversification. The results of thestudy illustrated that 76.25% of farmers use a single marketing channel, categorizing them as non-diversified, while only23.75% adopt multiple channels, reflecting diversified strategies. Factors such as education level, household size, primaryoccupation, agricultural training, market proximity significantly promote market diversification. In contrast, market distanceand awareness of the Minimum Support Price (MSP) have negligible effects. The study highlights the need for timelypayments, stronger financial support and targeted education and training to help farmers access and benefit from diversemarketing channels.