Analysis of the Factors Influencing Market Participation among Smallholder Rice Farmers in Magway Region, Central Dry Zone of Myanmar

Abstract

Smallholder farmers face numerous constraints that restrict their access to markets and prevent them from taking advantage of market opportunities. This research aimed to examine the factors affecting the market participation of smallholder farmers and find ways to improve the income and livelihood of smallholder farmers, focusing on Myothit Township in Magway Region, Central Dry Zone of Myanmar. For the primary data, we surveyed 150 smallholder rice farmers which were selected using a random sampling technique. Using the Heckman two-stage selection model, we analyzed the factors influencing smallholder rice farmers’ decisions regarding participation in the agricultural market. This study revealed that the decision to participate in the rice market was dependent on different factors such as the household head age, education status, household size, total produce of rice, price of rice, household income, ownership of livestock, membership of farmer organization, access to roads, distance to market, access to extension services, and market information. The results of this study have implications as to what factors need to be addressed to encourage smallholder rice farmers to participate in the market. We suggest that Myanmar government and policymakers need to establish balanced policies for small-scale farmers and manage them in an appropriate way so that agricultural development can be induced, contributing to poverty reduction, food security, and economic development.