IDEAS home Printed from https://ideas.repec.org/a/ags/aerrae/58464.html
   My bibliography  Save this article

Instability, Supply Response and Insurance in Oilseeds Production in India

Author

Listed:
  • Pandey, L.M.
  • Kumar, Sant
  • Mruthyunjaya

Abstract

Yield and price instability and covariate risks have been examined for major oilseeds, viz. groundnut, rapeseed/mustard, sunflower and soybean, in selected states of India using time series data. Risk behaviour and effects of price and price risk on production have been analyzed in a rational expectations framework. The study has also estimated social gains from yield and revenue insurance in oilseeds. While instabilities in yield, prices and gross return have shown mixed responses, covariate risks have increased. The results of econometric analysis have indicated that the expected prices and price risk are important determinants of oilseeds production. Price elasticities of oilseed production have been found to vary between 0.26 and 0.88 and price risk elasticities of production between –0.006 and –0.07 in different Indian states. The potential efficiency gains from insurance schemes based on rainfall and other meteorological variables have been estimated to be 17.5 to 43 per cent over self-insurance in oilseeds production.

Suggested Citation

  • Pandey, L.M. & Kumar, Sant & Mruthyunjaya, 2005. "Instability, Supply Response and Insurance in Oilseeds Production in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(Conferenc).
    • Handle: RePEc:ags:aerrae:58464
    DOI: 10.22004/ag.econ.58464
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/58464/files/LM-Pandey.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.58464?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Satheesh V. Aradhyula & Matthew T. Holt, 1989. "Risk Behavior and Rational Expectations in the U.S. Broiler Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(4), pages 892-902.
    2. B. Wade Brorsen & Jean-Paul Chavas & Warren R. Grant, 1987. "A Market Equilibrium Analysis of the Impact of Risk on the U.S. Rice Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 733-739.
    3. repec:feb:artefa:0008 is not listed on IDEAS
    4. Richard E. Just, 1974. "An Investigation of the Importance of Risk in Farmers' Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(1), pages 14-25.
    5. Hans P. Binswanger, 1980. "Attitudes Toward Risk: Experimental Measurement in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(3), pages 395-407.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Birthal, Pratap Singh & Nigam, Shyam N. & Narayanan, A.V. & Kareem, K.A., 2012. "Potential Economic Benefits from Adoption of Improved Drought-tolerant Groundnut in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(1), June.
    2. G. Mythili, 2006. "Supply response of Indian farmers: Pre and post reforms," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2006-009, Indira Gandhi Institute of Development Research, Mumbai, India.
    3. G. Mythili, 2010. "Supply Response of Indian Farmers: Pre and Post Reforms," Working Papers id:2633, eSocialSciences.
    4. G. Mythili, 2006. "Supply Response of Indian Farmers - Pre and Post Reforms," Microeconomics Working Papers 22412, East Asian Bureau of Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Burton, Diana M. & Love, H. Alan, 1996. "A Review of Alternative Expectations Regimes in Commodity Markets: Specification, Estimation, and Hypothesis Testing Using Structural Models," Agricultural and Resource Economics Review, Cambridge University Press, vol. 25(2), pages 213-231, October.
    2. Lence, Sergio Horacio, 1991. "Dynamic firm behavior under uncertainty," ISU General Staff Papers 1991010108000010656, Iowa State University, Department of Economics.
    3. Bullock, David S. & Garcia, Philip & Shin, Kie-Yup, 2005. "Measuring producer welfare under output price uncertainty and risk non-neutrality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 1-21.
    4. Julie SUBERVIE, 2006. "The impact of world price instability on agricultural supply according to several macroeconomic factors," Working Papers 200604, CERDI.
    5. Miranda, Mario J & Glauber, Joseph W, 1993. "Estimation of Dynamic Nonlinear Rational Expectations Models of Primary Commodity Markets with Private and Government Stockholding," The Review of Economics and Statistics, MIT Press, vol. 75(3), pages 463-470, August.
    6. Schoney, R. A., 1990. "An Analysis of Wheat Supply Response Under Risk and Uncertainty," Working Papers 244030, Agriculture and Agri-Food Canada.
    7. Holt, Matthew T., 1992. "Modelling Risk Response in the Marketing Channel for Beef: A Multivariate Generalize Arch-M Approach," Staff Papers 200546, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    8. repec:phd:pjdevt:jpd_1992_vol__xix_no__2-d is not listed on IDEAS
    9. Haigh, Michael S. & Bryant, Henry L., 2001. "The effect of barge and ocean freight price volatility in international grain markets," Agricultural Economics, Blackwell, vol. 25(1), pages 41-58, June.
    10. Z. Bar‐Shira & R.E. Just & D. Zilberman, 1997. "Estimation of farmers' risk attitude: an econometric approach," Agricultural Economics, International Association of Agricultural Economists, vol. 17(2-3), pages 211-222, December.
    11. Pope, Rulon D. & LaFrance, Jeffrey T & Just, Richard E., 2007. "Agricultural Arbitrage and Risk Preferences," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt3tw1m1p0, Department of Agricultural & Resource Economics, UC Berkeley.
    12. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    13. Pope, Rulon D. & LaFrance, Jeffrey T. & Just, Richard E., 2011. "Agricultural arbitrage and risk preferences," Journal of Econometrics, Elsevier, vol. 162(1), pages 35-43, May.
    14. Shumway, C. Richard, 1993. "Production economics: Worthwhile investment?," Agricultural Economics, Blackwell, vol. 9(2), pages 89-108, August.
    15. Just, Richard E., 1992. "Discovering Microeconomic Relationships in Agriculture," 1992 Conference (36th), February 10-13, 1992, Canberra, Australia 146530, Australian Agricultural and Resource Economics Society.
    16. Hall, Joyce A. & Brorsen, B. Wade, 1989. "The Policy Implications of Corn and Soybean·Supply Response to Risk," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270502, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Holt, Matthew T., 1989. "Risk, Rational Expectations, and Price Stabilization in the U.S. Corn Market," Staff Papers 200480, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    18. Branch, William & Tilley, Daniel S., 1991. "Catfish Producer Harvest Response To Production And Asymmetric Price Risk," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 23(2), pages 1-9, December.
    19. Just, Richard E., 2000. "Some Guiding Principles for Empirical Production Research in Agriculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 138-158, October.
    20. Joyce Hall Krause & B. Wade Brorsen, 1995. "The Effect of Risk on the Rental Value of Agricultural Land," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 17(1), pages 71-76.
    21. Michael S. Haigh & Henry L. Bryant, 2000. "The effect of barge and ocean freight price volatility in international grain markets," Agricultural Economics, International Association of Agricultural Economists, vol. 25(1), pages 41-58, June.

    More about this item

    Keywords

    Agricultural and Food Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aerrae:58464. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeraiea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.