This policy brief presents the results of a study examining the impact of supermarkets on smallholder farmers in India. Using field survey data collected from 795 farm households across four states representing India’s varied agroclimatic and socioeconomic regions, researchers found that farmers who sold to supermarkets saw a 14% increase in their net income. The researchers also discovered several factors that influence whether farmers sell to supermarkets. Specialized vegetable farms and those equipped with irrigation were more likely to sell to supermarkets, while smaller farms were less likely to do so.

Based on these results, TCI recommends that policymakers:

• Provide more farmers with the option to sell to supermarkets by incentivizing the expansion of procurement centers in rural areas.
• Develop small farmers’ capability to sell to supermarkets by investing in irrigation and vegetable-production extension services.

Download the policy brief