Monopsonists, disruptive innovation and food security: The case of high‐value commodity

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dc.creatorMishra, Ashok K.
dc.creatorKumar, Anjani
dc.creatorJoshi, Pramod Kumar
dc.creatorDsouza, Alwin
dc.date2022-03
dc.date2024-04-12T13:37:41Z
dc.date2024-04-12T13:37:41Z
dc.date.accessioned2026-06-27T15:03:04Z
dc.descriptionPrivate firms in monopsony undertake disruptive innovation like contract farming (CF), where the firm invests in the food supply chain, provides credit, assumes the risk, and implements management strategies. This study investigates the impact of monopsonist involvement in CF and its impact on food security indicators among smallholders. Findings reveal that the monopsonist CF structure for ginger processing in Nepal increases the market price by about 18%, yields by 10%, and profits by 66%. However, the impact varies with farm size. Small farms (≤0.51 hectares (ha)) engaged in CF have higher yields (18%), earn higher profits (81%), and receive higher market prices (12%) than small noncontract ginger producers. Contrary to popular belief, disruptive innovation in value chains by monopsonists could lead to higher yields, the market price received, and profitability for both small and large farmers.
dc.identifierhttps://hdl.handle.net/10568/141320
dc.identifier.urihttp://hdl.handle.net/123456789/93131
dc.languageen
dc.publisherAgricultural and Applied Economics Association
dc.rightsLimited Access
dc.sourceMishra, Ashok K.; Kumar, Anjani; Joshi, Pramod Kumar; and Dsouza, Alwin. 2022. Monopsonists, disruptive innovation and food security: The case of high‐value commodity. Applied Economic Perspectives and Policy 44(1): 460-476. https://doi.org/10.1002/aepp.13122
dc.subjectcommodities
dc.subjectfood security
dc.subjectcontract farming
dc.subjectprofit
dc.titleMonopsonists, disruptive innovation and food security: The case of high‐value commodity
dc.typeJournal Article

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)