Title: Using ICT to reduce transaction costs in agriculture through better communication: A case-study from Sri Lanka
Authors: Harsha de Silva and Dimuthu Ratnadiwakara
Pages: 20 pp.
Publisher: LIRNEasia
Date (published): 18/11/2009
Date (accessed): 20/11/2009
Type of information: research paper
Language: English
On-line access: yes (pdf)
Abstract:
This paper considers the specific role of information and communication technologies
[ICT] in reducing transaction costs in agriculture by enabling timely and affordable
communication. Segmenting transaction costs in to several components, the paper
isolates the costs associated with information search as the specific costs that could be
influenced through ICT. Analyzing the findings of a case study among a group of smallholder
vegetable farmers in Sri Lanka the paper identifies the specific information needs
of these farmers along the agriculture value chain starting with the decision on the crop
to be planted and ending with the sale of produce at the wholesale market and measures
the information search costs associated with this group of farmers. The paper concludes
by indicating the possibility of dramatic reductions of transaction costs with the use of
ICT to reduce information search costs to enable greater farmer participation in
commercial agriculture as opposed to subsistence farming that continue to force so
many farmers in developing countries in to poverty.