Marketing performance and factors influencing farmers’ choice for agricultural output marketing channels: The case of potato (Solanum tuberosum) in India

Efficient agricultural marketing is essential for converting farm output into income for farmers, particularly for perishable crops like potatoes. This study evaluates the performance of four distinct potato marketing channels in the northern state of Himachal Pradesh, in line with the One District One Product (ODOP) initiative. We analysed primary data collected from 150 farmers and 20 intermediaries using cost–margin analysis and employed a Multinomial Logit model to estimate the factors influencing farmers' choices of marketing channels. Four major channels were identified in the study area. Channel IV (Producer → Retailer → Consumer) emerged as the most efficient, providing the highest producer share (84.07%) and the lowest marketing costs. Conversely, Channel III (contracted sales to PepsiCo) incurred the highest marketing costs and demonstrated the lowest efficiency, despite having the highest consumer price. Traditional channels (I and II) exhibited moderate performance but were characterised by delayed payments and wider price spreads. Farmers' selection of marketing channels was significantly influenced by factors such as farming experience, marketable surplus, distance to markets, payment timelines, and access to informal information. The study recommends expanding direct marketing models, strengthening rural infrastructure, and ensuring timely payments to enhance marketing efficiency and support income growth for potato farmers in hilly regions.