Producers and Markets in Rural Bihar: A Case of Tribal Handicrafts

Abstract

The production and marketing of products made by rural artisans in India is carried out under conditions of uncertainty. The interlocking of product and credit markets, as it exists in rural areas, adversely affects the viability and sustainability of economic activities of poor artisans. More importantly, such interlocking has hindered the development of the collective bargaining capacity of the producers, which, in turn, has undermined their capability to scout for markets and fetch better prices. This paper illustrates the case of an innovative attempt by a nongovernment intermediary to organise marginal artisan producers in rural Bihar with a view to give them access to a larger market.