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Food Corporation of India and the Public Distribution System: Impacts on Market Integration in Wheat, Rice, and Pearl Millet

Author

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  • Mallory, Mindy
  • Baylis, Kathy

Abstract

We examine the spatial integration of wheat, rice and pearl millet in the Indian states of Bihar, Haryana, and Uttar Pradesh after the reforms of 2002 which liberalized inter-state trade. Our data represent a large share oflndia's cereal grains. The government regulates markets for staple foods heavily; almost all grain is marketed through government licensed markets that impose a price floor. This could discourage private investment in storage capacity among farmers and traders, impacting market integration. We find little evidence of market integration despite the 2002-03 reforms, and this fragmentation is particularly notable for smaller, and less regulated crops.

Suggested Citation

  • Mallory, Mindy & Baylis, Kathy, 2012. "Food Corporation of India and the Public Distribution System: Impacts on Market Integration in Wheat, Rice, and Pearl Millet," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 30(2).
    • Handle: RePEc:ags:jloagb:260210
    DOI: 10.22004/ag.econ.260210
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    Citations

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    Cited by:

    1. Nicholas Li, 2021. "In-kind transfers, marketization costs and household specialization: Evidence from Indian farmers," Working Papers tecipa-700, University of Toronto, Department of Economics.
    2. Singha Mahapatra, Maheswar & Mahanty, Biswajit, 2020. "Policies for managing peak stock of food grains for effective distribution: A case of the Indian food program," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    3. Li, Nicholas, 2023. "In-kind transfers, marketization costs and household specialization: Evidence from Indian farmers," Journal of Development Economics, Elsevier, vol. 164(C).
    4. Lentz, Erin C. & Michelson, Hope C. & Baylis, Kathy, 2017. "An Approach to Improving Early Warning Systems: Using Spatially and Temporally Rich Data to Predict Food Insecurity Crises in Malawi," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258223, Agricultural and Applied Economics Association.

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    Keywords

    Agribusiness;

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