The Vulnerability of Small-Scale Farmers in the Value Chain of Agricultural Commodities:

In recent years there has been increased number of literature and research re-lated to value chain analysis. This study examines the vulnerability of small-scale farmers and how through upgrading they may improve their livelihoods. Small-scale local farmers, in their interaction with other actors, especially buy-ers in the coconut chain have limited possibility to upgrade their activities. Though the farmers undertake process, product and functional upgrading it is difficult and ambiguous how it will reduce vulnerability and improve liveli-hoods of these farmers. The study unraveled constraints to upgrading such as inefficient tech-nology, poor institutional capacities and low level investment in agricultural research. The farmers have poor socio-economic status and they try to provide livelihood security through diversification into other crops production and an-imal rearing rather than specialising in coconut production. The role of farm-ers’ associations is confined to providing security against stealing of coconut and to address low produce prices. Finally, the paper emphasizes collective ac-tion of the farmers and executive of association to press for higher price and political representation which may stimulate improvement in the livelihoods of the farmers.