EXPLORING THE DRIVING FACTORS REGARDING CHICKPEA FARMERS’ DECISION TO INTEGRATE INTO THE WHOLESALE MARKETS: A MICRO LEVEL ANALYSIS IN THE THAL REGION, PAKISTAN

Abstract

This research investigates the driving factors, more specifically impact of distance to wholesale market and education level for chickpea grower’s wholesale market participation in the Thal region of Punjab, Pakistan. The study used the cross-sectional data of 225 chickpea growers, collected through multi-stage sampling techniques in year 2023 from 5 tehsils (Bhakkar, Mankera, Drya Khan, Chobara and Noorpur) of three districts; Bhakkar, Layyah and Khushab. Unlike existing studies which typically used binary choice of farmer participation, this research investigates three levels of participation; no participation, low participation and high participation.  In this study the dependent variable is qualitative in nature with limited response which suggest maximum likelihood estimation technique and ordered logistic regression approach is most appropriate for examining the factors for chickpea farmer market engagement. Most socioeconomic and market factors are consistent with economic theory and existing literature such as; farmers level of income, land size, animal ownership, and price difference showed positive and significant impact on level of participation. However, increased level of education, and farmer’s own use of capital induced the farmer’s preferences to sell in the local market over the wholesale market. Moreover, this research interestingly found that chickpea growers located away from secondary markets are more likely to participate in wholesale market, possibly just because off local collector offering less incentives and be more exploitive. These results have important implications for policymakers with an objective is to enhance market access for chickpea growers.