How are vegetable markets in Odisha transforming?

Narayanan, Sudha; Belton, Ben; Gautum, Aditi; Al-Hasan, Md.; Liverpool-Tasie, Lenis Saweda O.

How are vegetable markets in Odisha transforming?

Autores

Liverpool-Tasie, Lenis Saweda O.

Editor

International Food Policy Research Institute

Descripción

Odisha’s market environment for vegetables is a complex mosaic of diverse institutions – including marketplaces regulated by the Odisha State Agricultural Marketing Board (OSAMB), those under local governments and those that private and unregulated. Since the 2000s, the State’s agricultural marketing policy has been progressively reformed to allow contract farming, establish private markets, free vegetable trade from regulatory purview and abolish fees associated with transacting in the regulated markets. This note presents results from a survey of 158 vegetable markets in six districts: Anugul, Bolangir, Cuttack, Ganjam, Keonjhar, and Koraput. It also covers four terminal markets in Bhubaneshwar, Puri, Rourkela, and Sambalpur. Contrary to popular belief about restrictive regulation and an overbearing state, over 90% of estimated vegetable deliveries in the study area arrive at unregulated markets. We estimate that each trader serves about 258-552 people and 4.1-8.39 operational holdings in the study area, depending on the season. There are approximately 18 retailers for every wholesaler. Vegetable markets have seen rapid transformation in recent years. Markets, especially private markets, have proliferated. More of them have become daily markets operating more days per week and hours per day. In 2025, they have a greater proportion and number of permanent stalls than in 2015. Both wholesalers and retailers have grown significantly in the past decade—wholesalers by 65% and retailers by 20%. Average quantities traded by both groups have increased, along with overall produce deliveries and transactions. Growth of volumes traded has been accompanied by market diffusion. The Hirschman-Herfindahl Index (HHI) for volumes delivered and traded declined to 7/10th and 3/5th of 2015 levels, respectively. An overwhelming 89% of the markets registered a growth in arrivals over the decade. This transformation is reflected in the villages as well, based on data from a survey of 154 villages in the study area. Two groups – retailers who purchase from farmers and sell within the village and farmers who retail their own produce – have a significant presence and have maintain their presence over the decade. More villages (about 38%) have transporters today who serve as market intermediaries compared to about less than 13% a decade ago. Today, a majority of villages have traders visiting the village during high season to collect produce just as village traders often collect vegetables from farmers to sell to traders outside even though on average there are just 1-2 per village. Collectively, these findings suggest that most villages have local marketing options available. A key finding, however, is that vegetable markets—where much of the trade occurs—have limited or poor infrastructure. Further, it may be useful to revisit the process of tendering the functions of market maintenance and operations for a system with greater accountability.