LAUSR

Abstract The governance of agricultural value chains other than those that are export oriented has not been well understood. A case in point is agricultural value chains in India, which are characterized by the dominance of the informal sector, lack of standardization, and local policy dynamics. The complex interactions among actors in such value chains are not explained in the existing literature, which focuses on standardized, cross-border trade. The nature of coordination, control, and interdependence in local agricultural value chains is distinct, varies with the commodity, and is closer to a network system. A study of six commodity-specific sub-sectors, namely milk, rice, poultry meat, cotton, potato, and sugarcane, found that all consisted of relatively informal markets and were non-retailer-trader-driven. Governance of these value chains is often riddled with overlapping and contradictory roles of actors. However, with the increasing trend of markets being controlled by organized players, a shift towards a buyer-driven market is expected in the future. In such a context, policy-makers should safeguard the interests of smallholder producers.