Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal

The private sector in Nepal participates in the regulated import and distribution of three types of subsidized fertilizer. However, almost 55% of the agrovets (family-owned microenterprises) that retail agricultural inputs do not comply. Many farmers rely on the fertilizer purchased through these ag...

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Detalles Bibliográficos
Autores: Gautam, S., Choudhary, D., Rahut, D.B.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:México
Institución:Centro Internacional de Mejoramiento de Maíz y Trigo
Repositorio:Repositorio Institucional de Publicaciones Multimedia del CIMMYT
OAI Identifier:oai:repository.cimmyt.org:10883/22546
Acceso en línea:https://hdl.handle.net/10883/22546
Access Level:acceso abierto
Palabra clave:AGRICULTURAL SCIENCES AND BIOTECHNOLOGY
Fertilizer Subsidy Policy
Input Retailers
FERTILIZERS
POLICIES
MARKET REGULATIONS
Sustainable Agrifood Systems
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spelling Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in NepalGautam, S.Choudhary, D.Rahut, D.B.AGRICULTURAL SCIENCES AND BIOTECHNOLOGYFertilizer Subsidy PolicyInput RetailersFERTILIZERSPOLICIESMARKET REGULATIONSSustainable Agrifood SystemsThe private sector in Nepal participates in the regulated import and distribution of three types of subsidized fertilizer. However, almost 55% of the agrovets (family-owned microenterprises) that retail agricultural inputs do not comply. Many farmers rely on the fertilizer purchased through these agrovets, including subsidized ones. There is no private sector importer of the three types of fertilizer covered by the subsidy program, which indicates that the agrovets either acquire these through leakage in the government distribution system or through illegal cross-border trade from India, both of which are considered legal noncompliance. We discern the determinants for this noncompliant behavior of agrovets using logistic regression. The results from logistic regression suggest that the agrovets that are more likely to comply are registered, have membership in business associations, and have a higher number of competitors. Those with diversified business portfolios and covering a greater number of districts are less likely to comply. Key informants, consisting of both public and private sector stakeholders, were solicited for their views on solving this noncompliant behavior. The private sector unanimously asserts the need for deregulation of fertilizer imports and the participation of agrovets in the distribution of the subsidized fertilizer. In contrast, the public sector is skeptical of the ability and trustworthiness of the private sector in the import and distribution of quality fertilizer. We propose a middle ground to mitigate private sector noncompliance and suggest a policy revisit to increase the fertilizer supply and distribution efficiency.175-199MIT Press Journals2023-03-16T00:46:12Z2023-03-16T00:46:12Z2022Published Versioninfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttps://hdl.handle.net/10883/2254610.1142/S01161105225001352390116-1105Asian Development Reviewreponame:Repositorio Institucional de Publicaciones Multimedia del CIMMYTinstname:Centro Internacional de Mejoramiento de Maíz y Trigoinstacron:CIMMYTEnglishNepalCambridge, MA (USA)CIMMYT manages Intellectual Assets as International Public Goods. The user is free to download, print, store and share this work. In case you want to translate or create any other derivative work and share or distribute such translation/derivative work, please contact CIMMYT-Knowledge-Center@cgiar.org indicating the work you want to use and the kind of use you intend; CIMMYT will contact you with the suitable license for that purposeOpen Accessinfo:eu-repo/semantics/openAccessoai:repository.cimmyt.org:10883/225462024-10-11T19:57:09Z
dc.title.none.fl_str_mv Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
title Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
spellingShingle Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
Gautam, S.
AGRICULTURAL SCIENCES AND BIOTECHNOLOGY
Fertilizer Subsidy Policy
Input Retailers
FERTILIZERS
POLICIES
MARKET REGULATIONS
Sustainable Agrifood Systems
title_short Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
title_full Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
title_fullStr Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
title_full_unstemmed Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
title_sort Behavior of private retailers in a regulated input market: An empirical analysis of the fertilizer subsidy policy in Nepal
dc.creator.none.fl_str_mv Gautam, S.
Choudhary, D.
Rahut, D.B.
author Gautam, S.
author_facet Gautam, S.
Choudhary, D.
Rahut, D.B.
author_role author
author2 Choudhary, D.
Rahut, D.B.
author2_role author
author
dc.subject.none.fl_str_mv AGRICULTURAL SCIENCES AND BIOTECHNOLOGY
Fertilizer Subsidy Policy
Input Retailers
FERTILIZERS
POLICIES
MARKET REGULATIONS
Sustainable Agrifood Systems
topic AGRICULTURAL SCIENCES AND BIOTECHNOLOGY
Fertilizer Subsidy Policy
Input Retailers
FERTILIZERS
POLICIES
MARKET REGULATIONS
Sustainable Agrifood Systems
description The private sector in Nepal participates in the regulated import and distribution of three types of subsidized fertilizer. However, almost 55% of the agrovets (family-owned microenterprises) that retail agricultural inputs do not comply. Many farmers rely on the fertilizer purchased through these agrovets, including subsidized ones. There is no private sector importer of the three types of fertilizer covered by the subsidy program, which indicates that the agrovets either acquire these through leakage in the government distribution system or through illegal cross-border trade from India, both of which are considered legal noncompliance. We discern the determinants for this noncompliant behavior of agrovets using logistic regression. The results from logistic regression suggest that the agrovets that are more likely to comply are registered, have membership in business associations, and have a higher number of competitors. Those with diversified business portfolios and covering a greater number of districts are less likely to comply. Key informants, consisting of both public and private sector stakeholders, were solicited for their views on solving this noncompliant behavior. The private sector unanimously asserts the need for deregulation of fertilizer imports and the participation of agrovets in the distribution of the subsidized fertilizer. In contrast, the public sector is skeptical of the ability and trustworthiness of the private sector in the import and distribution of quality fertilizer. We propose a middle ground to mitigate private sector noncompliance and suggest a policy revisit to increase the fertilizer supply and distribution efficiency.
publishDate 2022
dc.date.none.fl_str_mv 2022
2023-03-16T00:46:12Z
2023-03-16T00:46:12Z
dc.type.none.fl_str_mv Published Version
info:eu-repo/semantics/publishedVersion
info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/10883/22546
10.1142/S0116110522500135
url https://hdl.handle.net/10883/22546
identifier_str_mv 10.1142/S0116110522500135
dc.language.none.fl_str_mv English
language_invalid_str_mv English
dc.rights.none.fl_str_mv Open Access
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Open Access
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.coverage.none.fl_str_mv Nepal
Cambridge, MA (USA)
dc.publisher.none.fl_str_mv MIT Press Journals
publisher.none.fl_str_mv MIT Press Journals
dc.source.none.fl_str_mv 2
39
0116-1105
Asian Development Review
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collection Repositorio Institucional de Publicaciones Multimedia del CIMMYT
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