Interactions on Livelihood Strategies - Options for Rural Producers and Urban Consumers

India has been a predominantly agricultural economy, it now seems to be increasingly shedding this image and transforming itself into a service sector-driven economy. As more and more policy decisions are being taken in favour of the manufacturing and service sectors, less is said about the agricultural sector. In an effort to overcome these constraints, an innovative market mechanism took shape in the heartland of Tamil Nadu, popularly called the Uzhavar Sandhais or the farmers’ markets. Uzhavar Sandhai is a unique fair farmers’ market model wherein ‘informed consumers’ buy the products of poor, small and marginal farmers at fair prices that induce the producers to stay in farming. The Farmers’ Markets are set up as a separate entity from the conventional marketing system; there are important overlaps between the two for both producers and consumers. These need to be better understood to maximize the positive impact of Farmers’ Markets. This paper summarizes the impact of Farmers’ Markets on the livelihoods of the most vulnerable key groups: small and marginal farmers and farming women, low-income urban consumers and vegetable hackers. It also examines the role of the institutions involved in the management of the initiative, and formulates recommendations to improve the efficiency and the positive impact of the policy on vulnerable groups.