Potential Determinants of a Sustainable Value Chain - An Exploratory Factor Analysis

Value chains are the means by which movement of agricultural produce are mapped from their production to consumption and emphasis is put upon value addition and better co-ordination among the stakeholders. The aim is to realize its full potential, in terms of increased income for stakeholders and better products for consumers. Studies have shown that a number of factors are found to be associated with a successful value chain. Moreover, these factors have more than one contributing variables. Therefore, the present study was conducted to find out such factors which can act as potential determinants for a sustainable value chain. To accomplish the objective, a value chain, which was operational for more than five years was considered as sustainable. The study was conducted in three different states viz., Uttar Pradesh, Haryana, and New Delhi, covering one hundred and sixty farmers who were growing carrot cv. Pusa Rudhira and Paddy cv. Pusa Basmati 1121. Personal interview method was employed to collect responses using close ended questions and were subjected to exploratory factor analysis using varimax rotation. A total number of five factors viz., institutional supports, socio-psychological parameters, networking, economical, and information and service availability could be extracted. The results of the study may be helpful for strengthening the existing value chains as well as for forming better ones.