The present study examined the factors influencing paddy farmers’ decision to choose the formal agency (government and cooperatives) as their primary disposal destination. It assessed the impact of this choice on price realisation and household income in Odisha. The analysis revealed that paddy output disposal to formal agencies improves price realisation and farmers’ income by ?3.31 per kg and ?16518 per annum as compared to informal agencies, respectively. The choice of formal agencies was determined by several factors, namely land size, marketed surplus, awareness about MSP, education, social status, and access to technical advice. The study emphasizes expanding the outreach of the existing Paddy-Procurement Automation System (P-PAS) system of its procurement in Odisha to enable the farmers to receive better prices for their produce and improve household income.
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A 2024 study studied this question.
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