This study explores the potential of dynamic pricing to support the economic sustainability of marginal farmers in India. These farmers, who comprise most of the agricultural labor force, face low incomes and high financial risks due to market fluctuations. Existing pricing structures do not adequately consider variations in demand and supply, leaving farmers vulnerable to financial instability. The study examines whether a dynamic pricing policy, which adjusts product prices in real-time based on market conditions, can enhance marginal farmers’ income stability and competitiveness.
An empirical analysis was conducted to evaluate the impact of dynamic pricing on revenue generation, market access and the absolute income of small and fragile farmers. The research assesses how this pricing strategy influences farmers’ economic outcomes under varying market conditions.
The study finds that implementing dynamic pricing can lead to higher and more stable income levels for marginal farmers. Additionally, dynamic pricing improves alignment with market needs and enhances farmers' bargaining capabilities. However, achieving these outcomes requires adequate infrastructure, technological support and policy frameworks.
The findings offer valuable insights for policymakers, agricultural economists, consumers and producers. A well-supported dynamic pricing system could significantly improve the welfare of marginal farmers, reducing their financial risks and fostering economic sustainability.
This research uniquely focuses on implementing dynamic pricing in the context of Indian marginal farmers, addressing their specific challenges. It provides empirical evidence on how dynamic pricing can transform market access and income stability for one of the most vulnerable groups in the agricultural sector.
