Expectations towards Geographical Indications-Empirical Evidence from India

In India agricultural products bearing Geographical Indication (GI) registration has increased progressively. GI registration is an indication that links the uniqueness of products towards the origin and thus, reduces the asymmetry of information between producer and consumer, ensuring market transparency, price stability and reduction in information costs. GIs can be used as an effective tool for ensuring the quality of the produce as well as developing brands for local agriculture products. Granting GI will assure the success only if the consumer values GI label. So far empirical evidence with respect to consumers’ awareness and WTP for GI product is mostly restricted to developed countries. This paper addresses expectations from both sides of market – consumers’ WTP (willingness to pay) and producers’ WTA (willingness to accept) for the GI product, Palakkadan Matta rice (Oryza sativa L) of Kerala, India. The results indicate that the awareness about GI registration is too low among the consumers. Consumers are willing to pay Rs. 5.01 per kilogram additionally, for ensuring the quality of the produce through GI label. Producers are willing to continue the cultivation by accepting an additional amount of Rs.5.82 per kilogram.

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Geographical Indications

 Record created 2017-04-01, last modified 2020-10-28

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