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Innovative Farmer Institutions and Market Imperfections

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  • Maria Costanza Torri

Abstract

The herbal sector, as it is currently structured, is unable to improve the living standards of the underprivileged communities, who are the gatherers of the medicinal plants, The role of grass-roots organisations and rural networks to reduce transaction costs and enhance market coordination, has been object of study in different sectors but there is a gap in the literature in the herbal sector. The article portraits the supply relations in the medicinal plant market and suggests to promote medicinal plant enterprises such as Gram Mooligai Company Limited (GMCL), the first community based enterprise active in the herbal sector. Lessons to promote a more equitable sharing of benefits in the sector, to reform the supply chain and to promote new forms of partnership between ayurvedic firms and communities are discussed.

Suggested Citation

  • Maria Costanza Torri, 2012. "Innovative Farmer Institutions and Market Imperfections," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 21(1), pages 59-90, March.
    • Handle: RePEc:sae:jouent:v:21:y:2012:i:1:p:59-90
    DOI: 10.1177/097135571102100103
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    References listed on IDEAS

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