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Plant Science Today (PST)

Review Articles

Vol. 13 No. sp2 (2026): Recent Advances in Agriculture

The paradox of market participation: Why some farmers exit despite higher market access?

DOI
https://doi.org/10.14719/pst.13378
Submitted
26 December 2025
Published
19-05-2026

Abstract

Smallholder farmers’ involvement in agricultural markets is represented as one of the main agents of agricultural transformation, poverty alleviation and rural development. However, many farmers opt out of the market even if access is improved. This review analyses the determinants, as well as the positive and the negative aspects of market engagement, using evidence from developing nations (Asia and Africa). Through the analysis, it is suggested that certain important driving factors are household and farm attributes, the institutional set-up, land tenure, price risks and climate vulnerabilities. Market participation is often linked with increased incomes, food security and the adoption of technologies. However, the long-term involvement may become unpredictable, though prices are unstable, risk management instruments are lacking and land titles and institutional trust are unreliable. The exit choices of farmers should not be viewed as a failure, but may be seen as a rational livelihood plan to reduce vulnerability and protect the household welfare. Enhancing physical access alone may be insufficient; the policies must also support market stability by providing storage, insurance, credit and transparent contracts and producer organisations. By acknowledging that exit is not a singular developmental concern, but a component of a larger array of livelihood approaches, commercialisation is not linearly depicted, but a pattern of one of the available interventions in rural development.

 

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