Chhattisgarh's agricultural sector, dominated by small and marginal farmers, faces persistent challenges of fragmented holdings, weak infrastructure, and poor market access, leading to low price realization and limited income growth. Traditional mandis, with high intermediary costs and inadequate logistics, often compel farmers to sell below the Minimum Support Price (MSP). This paper explores how strengthening agricultural value chains can address these issues by enhancing market efficiency and farmer participation. The study focuses on paddy, pulses, and minor forest produce (MFP) which are key components of the state's farm economy where value addition remains minimal. Evidence suggests that Farmer Producer Organizations (FPOs) in Chhattisgarh have emerged as pivotal actors, undertaking aggregation, processing, and licensing roles to reduce transaction costs and improve bargaining power. However, gaps persist in value chain financing, cold-chain facilities, and digital adoption. The research highlights the need for innovative financial products to support entire value chains, integration with e-NAM, and adoption of industrial value chain models linking producers with processing industries and organized retail. Policy recommendations include targeted investments in infrastructure, capacity building, and technology-driven solutions to create competitive, sustainable, and inclusive value chains. Strengthening these linkages can transform Chhattisgarh's agricultural marketing landscape, increasing farm incomes and ensuring food security.
Neelam Sinha (Wed,) studied this question.