The effect of COVID-19 pandemic on market integration: Evidence from vegetable farmers in Pakistan

Abstract

The COVID-19 pandemic exposed the agriculture sector and farming communities to unprecedented risks. This study investigates the impact of the pandemic, identifying the suggestions of community elders for effective resilience via in-depth interviews (IDIs) and Focus Group Discussions (FGDs). We also examine determinants of vegetable farmers' inputs and outputs market participation using a binary logit model. The findings reveal poor business owners’ support, difficulties accessing inputs and outputs markets, non-availability/shortage of inputs recommended by extension services, and poor access to mechanizations. Labor shortages, lack of access to agricultural credit, and lack of information on innovations and markets are also barriers to market integration of farming communities in Pakistan. Results of the logit model show that farming experience and support from market owners drive the participation of both the inputs and outputs market. Similarly, ownership of personal vehicles and the availability of farm machinery drive the participation of farmers in outputs markets. Various strategies are suggested to mitigate the risks of the Covid-19 pandemic, including the establishment of inputs and outputs markets, strategies for transportation, access to information, and farm machinery at the local level.