Competition and power in rural markets: a case study from Andhra Pradesh

In a study of two villages in Andhra Pradesh, done in 1986/87, there were clear linkages between credit transactions and sales of crops. Producers from powerful classes were able to control the timing of sales of their crop, and hence obtain better prices; by contrast, petty commodity producers sold their groundnut crop soon after harvest, often to their moneylender. In one village, personal clientelization of borrowers "tied' then to a particular merchant in a long-term relationship involving interlinked transactions. In a more developed village nearby, with more competition, personalized clientage was less common. In both villages, small producers were forced, through a process of subtle manipulation, to sell groundnut at disadvantageous prices. Paddy was grown on a small scale by farmers. They used it for home consumption. The article suggests ways of improving future research on power within such markets. -from Author