IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/212636.html
   My bibliography  Save this paper

India's Political Economy Responses to Global Food Price Shock of 2007-08: Learning Some Lesson

Author

Listed:
  • Gulati, Ashok
  • Saini, Shweta

Abstract

India's policy responses were strong to the food price crisis. Exports of basic staples were banned, domestic support prices of wheat and rice were raised substantially, urea price increases in global markets were absorbed through enhanced fertilizer subsidy, and a National Food Security Mission was launched to raise grain production by 20 MMT over the next five years. The results: India contained food inflation below 7 percent in 2007-08; grain production increased by 42 MMT; and grains stocks touched 82 MMT. With freeing of exports in September 2011, India became a world leader in rice exports. The cost of this policy was rising subsidies on food and fertilizers, rising fiscal deficit, leading to double digit food inflation after 2009-10. Had India quickly reviewed its export ban policy, and opened exports earlier, it could avoid excessive grain stocks, reduced fiscal deficit, and benefited global markets, leading to a win-win situation.

Suggested Citation

  • Gulati, Ashok & Saini, Shweta, 2015. "India's Political Economy Responses to Global Food Price Shock of 2007-08: Learning Some Lesson," 2015 Conference, August 9-14, 2015, Milan, Italy 212636, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:212636
    DOI: 10.22004/ag.econ.212636
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/212636/files/India_s%20Political%20Economy%20Response%20to%202007-08%20food%20price%20crisis.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.212636?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Olinto, Pedro & Beegle, Kathleen & Sobrado, Carlos & Uematsu, Hiroki, 2013. "The State of the Poor: Where Are The Poor, Where Is Extreme Poverty Harder to End, and What Is the Current Profile of the World’s Poor?," World Bank - Economic Premise, The World Bank, issue 125, pages 1-8, October.
    2. von Grebmer, Klaus & Saltzman, Amy & Birol, Ekin & Wiesman, Doris & Prasai, Nilam & Yin, Sandra & Yohannes, Yisehac & Menon, Purnima & Thompson, Jennifer & Sonntag, Andrea, 2014. "2014 Global Hunger Index: The challenge of hidden hunger," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-958-0 edited by Sonntag, Andrea & Neubauer, Larissa & Towey, Olive & von Grebmer, Klaus & Yin, Sandra.
    3. Matthias Kalkuhl & Joachim von Braun & Maximo Torero (ed.), 2016. "Food Price Volatility and Its Implications for Food Security and Policy," Springer Books, Springer, number 978-3-319-28201-5, December.
    4. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237.
    5. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    6. Shweta Saini & Ashok Gulati, 2015. "The National Food Security Act (NFSA) 2013 - Challenges, Buffer Stocking and the Way Forward," Working Papers id:6672, eSocialSciences.
    7. von Grebmer, Klaus & Saltzman, Amy & Birol, Ekin & Wiesmann, Doris & Prasai, Nilam & Yin, Sandra & Yohannes, Yisehac & Menon, Purnima & Thompson, Jennifer & Sonntag, Andrea, 2014. "Synopsis of 2014 Global hunger index: The challenge of hidden hunger:," Issue briefs 83, International Food Policy Research Institute (IFPRI).
    8. Kalkuhl, Matthias & von Braun, Joachim & Torero, Maximo, 2016. "Food Price Volatility and Its Implications for Food Security and Policy," MPRA Paper 72164, University Library of Munich, Germany.
    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. Tripathi, Ashutosh K. & Mishra, Ashok K., 2023. "Effect of public stockholding on wheat price dynamics in India: A quantile autoregression approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 68(01), September.

    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. Ashok Gulati & Shweta Saini, 2015. "India's political economy responses to the global food price shock of 2007-08: Learning some lessons," WIDER Working Paper Series 120, World Institute for Development Economic Research (UNU-WIDER).
    2. Al Zayed, Islam Sabry & Elagib, Nadir Ahmed & Ribbe, Lars & Heinrich, Jürgen, 2016. "Satellite-based evapotranspiration over Gezira Irrigation Scheme, Sudan: A comparative study," Agricultural Water Management, Elsevier, vol. 177(C), pages 66-76.
    3. Karakotsios, Achillefs & Katrakilidis, Constantinos & Kroupis, Nikolaos, 2021. "The dynamic linkages between food prices and oil prices. Does asymmetry matter?," The Journal of Economic Asymmetries, Elsevier, vol. 23(C).
    4. Marlous Milliano & Ilze Plavgo, 2018. "Analysing Multidimensional Child Poverty in Sub-Saharan Africa: Findings Using an International Comparative Approach," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(3), pages 805-833, June.
    5. Naoyuki Yoshino & Victoriia Alekhina, 2016. "Impact of oil price fluctuations on an energy-exporting economy: Evidence from Russia," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 2(4), pages 156-166.
    6. Channing Arndt & Felix Asante & James Thurlow, 2015. "Implications of Climate Change for Ghana’s Economy," Sustainability, MDPI, vol. 7(6), pages 1-18, June.
    7. Lorenzo A. Cadinu & Paolo Barra & Francesco Torre & Francesco Delogu & Fabio A. Madau, 2020. "Insect Rearing: Potential, Challenges, and Circularity," Sustainability, MDPI, vol. 12(11), pages 1-23, June.
    8. James D. A. Millington & Hang Xiong & Steve Peterson & Jeremy Woods, 2017. "Integrating Modelling Approaches for Understanding Telecoupling: Global Food Trade and Local Land Use," Land, MDPI, vol. 6(3), pages 1-18, August.
    9. Bouët, Antoine & Laborde Debucquet, David (ed.), 2017. "Agriculture, development, and the global trading system: 2000– 2015," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-89629-249-9.
    10. Dalheimer, Bernhard & Herwartz, Helmut & Lange, Alexander, 2021. "The threat of oil market turmoils to food price stability in Sub-Saharan Africa," Energy Economics, Elsevier, vol. 93(C).
    11. Traverso, Silvio & Schiavo, Stefano, 2020. "Fair trade or trade fair? International food trade and cross-border macronutrient flows," World Development, Elsevier, vol. 132(C).
    12. Bouët, Antoine & Laborde Debucquet, David, 2017. "Conclusion: Which policy space in the international trade arena can support development and food security?:," IFPRI book chapters, in: Bouët, Antoine & Laborde Debucquet, David (ed.), Agriculture, development, and the global trading system: 2000– 2015, chapter 13, International Food Policy Research Institute (IFPRI).
    13. Ahmad, Munir & Iqbal, Muhammad & Farooq, Umar, 2015. "Food Security and its Constraining Factors in South Asia: Challenges and Opportunities," MPRA Paper 72868, University Library of Munich, Germany.
    14. Kanslime, Monica K. & Karanja, Daniel K. & Alokit, Christine & Ochieng, Justus, 2018. "Derived demand for African indigenous vegetable seed: implications for farmer-seed entrepreneurship development," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 21(6), July.
    15. José Aguilar Retureta, 2016. "Explaining regional inequality from the periphery: The mexican case, 1900-2000," Documentos de Trabajo (DT-AEHE) 1608, Asociación Española de Historia Económica.
    16. Elisabeth Vollmer & Daniel Hermann & Oliver Musshoff, 2019. "The disposition effect in farmers’ selling behavior: an experimental investigation," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 177-189, March.
    17. Miomir Jovanović & Ljiljana Kašćelan & Aleksandra Despotović & Vladimir Kašćelan, 2015. "The Impact of Agro-Economic Factors on GHG Emissions: Evidence from European Developing and Advanced Economies," Sustainability, MDPI, vol. 7(12), pages 1-21, December.
    18. Rosero, Gabriel & Jaghdani, Tinoush Jamali & Brümmer, Bernhard, 2021. "Unravelling complex market relationships. A study on the price volatility of Brazilian pork using a DCC-MGARCH approach," 95th Annual Conference, March 29-30, 2021, Warwick, UK (Hybrid) 311090, Agricultural Economics Society - AES.
    19. Adrino Mazenda, 2016. "The Effect of BRICS Trade Relations on South Africa’s Growth," EERI Research Paper Series EERI RP 2016/11, Economics and Econometrics Research Institute (EERI), Brussels.
    20. Giorgio Calcagnini & Germana Giombini & Giuseppe Travaglini, 2015. "The productivity gap among European countries," Working Papers 1510, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2015.

    More about this item

    Keywords

    Agricultural and Food Policy; Agricultural Finance;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iaae15:212636. 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/iaaeeea.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.