Can better market access lead to higher incomes for farmers?

This study constructs a multi-dimensional index of market access, considering market orientation of commodities, market channels and market information. The findings show that better access to markets improves returns from farming. With respect to the composite index of market access, the elasticity of net farm income is 0.359 and of gross farm income is 0.316. With one percentage point improvement in market access the net income rises by Rs. 392 and gross income by Rs. 764. Further it demonstrates that even if the minimum support price policy is implemented uniformly across the country, improving market access remains important for enhancing farm incomes.