Digital Transformation in Agricultural Marketing: A Comparative Analysis of the Volume of Agricultural Produce Transactions across Marketing Channels

Abstract

The study aimed to compare the transaction volume and economic performance of agricultural produce marketed through physical, digital, and combined (physical and digital) marketing channels across farm-size categories in Chikkaballapur district of Karnataka. An ex-post facto research design was adopted, and primary data were collected from 120 farmers during 2024–25 using a pre-tested structured interview schedule. A multistage sampling procedure combining purposive and random sampling techniques was followed, with 40 farmers each representing physical, digital, and combined marketing channels. Five major crops, namely groundnut, maize, paddy, ragi, and redgram, were considered. Transaction performance was assessed in terms of quantity sold, average selling price, and gross returns, and the data were analysed using means and percentages. The findings revealed substantial differences in transaction performance among the marketing channels. Digital marketing recorded the highest overall quantity sold, ranging from 15 to 21 quintals, compared with 7 to 13 quintals under physical marketing and 11 to 17 quintals under combined marketing. Digital marketing also recorded the highest average selling prices for all five crops, with ₹33/kg for groundnut, ₹28/kg for maize, ₹28/kg for paddy, ₹24/kg for ragi, and ₹34/kg for redgram. Consequently, the corresponding gross returns under digital marketing were ₹66,000, ₹53,200, ₹58,800, ₹36,000, and ₹64,600, respectively. In comparison, gross returns under physical marketing were ₹31,200, ₹23,400, ₹26,400, ₹20,400, and ₹6,300, while combined marketing recorded ₹38,400, ₹16,500, ₹35,700, ₹29,400, and ₹31,200 for groundnut, maize, paddy, ragi, and redgram, respectively. The highest gross return under digital marketing was recorded for groundnut, followed by redgram and paddy. Combined marketing recorded higher returns than physical marketing for groundnut, paddy, ragi, and redgram, whereas physical marketing recorded a higher return than combined marketing for maize. Overall, digital marketing demonstrated superior transaction performance through higher quantities sold, better price realisation, and greater gross returns across the crops studied. The study highlights the potential of digital marketing to improve farmers’ market access and economic returns; strengthening digital infrastructure, digital literacy, and access to online marketing platforms could further enhance agricultural marketing efficiency.