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On the political economy of corporate encroachment in agriculture: short term macroeconomic concerns

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  • Shantanu Roy

    (TERI School of Advanced Studies)

  • C. Saratchand

    (University of Delhi)

Abstract

Macroeconomic interactions between agriculture and non-agricultural sectors of a developing economy are irreducibly linked to corporate encroachment in agriculture. In this paper we discuss some short run aspects of macroeconomic interaction between the agricultural and non-agricultural sectors of a developing economy like India with implicit and explicit policy support to the process of corporate encroachment in agriculture. We then set out a simple mathematical model to evaluate the macroeconomic consequences of policy support to the process of corporate encroachment in agriculture. An important component of inter-sectoral relationships in India has been the institution of a system of public procurement of agricultural commodities and its disbursal through a public distribution system. Policy support to corporate encroachment in agriculture has involved both these components for instance an attenuation of public procurement and a diminution of the public distribution system due to targeting. Though the Three Farm Laws have been repealed, the threat of further corporate encroachment into agriculture, through other means, remains.

Suggested Citation

  • Shantanu Roy & C. Saratchand, 2023. "On the political economy of corporate encroachment in agriculture: short term macroeconomic concerns," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 40(3), pages 869-897, October.
    • Handle: RePEc:spr:epolit:v:40:y:2023:i:3:d:10.1007_s40888-023-00309-8
    DOI: 10.1007/s40888-023-00309-8
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    References listed on IDEAS

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