A Factor Analysis of Key Determinants in the Fruits and Vegetables Value Chain

Abstract

Aims: The study aims to analyze the fruits and vegetables value chain in Western Maharashtra by examining production, storage, transportation, processing, marketing, and export, and to identify the underlying latent factors influencing its efficiency, competitiveness, and sustainability. Study Design: A descriptive and analytical research design was employed, incorporating both quantitative and qualitative approaches. Place and Duration of Study: The study was conducted in the Western Maharashtra region covering major fruit and vegetable producing areas. Data collection was carried out over a period of six months during 2024. Methodology: A total of 110 respondents were surveyed, including farmers, traders, processors, exporters, transport operators, and storage providers. Data were collected using structured questionnaires, personal interviews, and focus group discussions. Factor analysis was performed after confirming the suitability of data through Kaiser-Meyer-Olkin (KMO = 0.725) and Bartlett’s Test of Sphericity (p < 0.001). Results: The analysis extracted four significant latent factors explaining 87% of the total variance: (1) Institutional and Policy Support, (2) Structural Bottlenecks and Market Constraints, (3) Production and Storage Strengths, and (4) Processing and Market Access. Strengths identified include quality seeds, cold storage facilities, value addition, and agro-processing opportunities. Weaknesses were noted in road connectivity, transport delays, middlemen dominance, and underutilization of export potential. Conclusion: The study concludes that while Western Maharashtra’s fruits and vegetables sector possesses notable production and storage strengths, inefficiencies in transportation, market access, and export hinder its competitiveness. Strengthening infrastructure, promoting agro-processing, enhancing market integration, and revitalizing exports are essential policy measures to ensure a more efficient and globally competitive value chain.