Key Drivers for Farmers and Consumers of Rythu Bazaars – A Study of The Farmers’ Markets of Andhra Pradesh

Rythu Bazaars-the farmers’ markets that started in 1999 is a result of the initiative of the then Andhra Pradesh government to provide a platform to the farmers to sell their produce directly to the consumers. During the last more than a decade, Rythu Bazaars have gained prominence and both farmers and consumers have shown interest in selling and purchasing vegetables at these market yards. This study integrates the concepts of the functioning of farmers’ markets and consumer preference, and the key drivers of both these stakeholders. Data from farmers’ and consumers’ survey in seven Rythu Bazaars in Hyderabad and one each from Visakhapatnam and Vijayawada has been used to find out the factors that drive farmers to operate at these markets and also the factors that drive the consumers to purchase their vegetables from these markets by using factor analysis. The paper further uses canonical correlation to find the key driving forces for both farmers and consumers to respectively sell and purchase vegetables from these markets.