WORKING PAPER 51 | Information sources, ICTs and price information in rural agricultural markets

The spread and rapid uptake of mobile telephony in Sub-Saharan Africa has
highlighted the potential role of ICTs in improving market participation and
welfare outcomes for farm producers in agricultural produce markets. This
paper explores the influence of different sources of information and transmission
technologies on the quantum and reliability of market information flowing to
farm producers, based on a survey of farm households in northern Ghana. Our
results suggest that the principal role of radio broadcasts and mobile telephony
is in providing a broader knowledge of markets by enhancing the quantum of
market information flowing to farm producers. They do not, however, appear to
have a significant impact on the quality/reliability of price information obtained
by farmers for making marketing decisions. Information sources appear to be
the chief determinant of the reliability of price information, with price
information obtained from extension agents being the most credible. Our results
provide some useful insights for the design and implementation of Market
Information Systems aimed at encouraging market participation by rural farm
producers in agricultural markets.



Authors
Giacomo Zanello and C. S. Srinivasan