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Abstract

This study aimed at evaluating the most effective commercialisation pathway (smallholder and inclusive) and its impacts on productivity and welfare on smallholder rice farmers in the pathways versus rain-fed farmers in Mbarali District. Output and input commercialisation indices (CCI and ICI) and propensity score matching were used for data analysis. The overall output commercialisation was more than half of the produced rice (CCI=59%) but the use of improved inputs in the study area was low (ICI = 27%). The proportion of rice sold was higher in the inclusive pathway (80%) relative to smallholder pathway (70%) and rain-fed scheme (41%). Total factor productivity ranged between 1.17 - 1.21 and 0.98 – 1.02 in the smallholder and inclusive pathways respectively more than that in the rain-fed scheme. In terms of welfare, inclusive pathway was better-off relative to the two groups. Therefore, both smallholder and inclusive pathways should be adopted to explore the synergies.

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