Can Risk Averse Competitive Input Providers Serve Farmers Efficiently in Developing Countries?
Under price ceilings and quality floors for agricultural inputs in cash crop sectors in developing countries where credit markets are weak, imperfect information on the ability of farmers to pay for their inputs at the end of the cropping season ma...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090429161327 http://hdl.handle.net/10986/4112 |
| Summary: | Under price ceilings and quality floors
for agricultural inputs in cash crop sectors in developing
countries where credit markets are weak, imperfect
information on the ability of farmers to pay for their
inputs at the end of the cropping season may lead the
decentralized production of those inputs by risk averse
private input providers to be inefficient. A coordinating
agency and/or subsidies for new farmers could help to
produce and distribute more agricultural inputs, thereby
increasing the profits for input providers while also
enabling more farmers to produce the crops that are key to
their livelihood. |
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