IDEAS home Printed from https://ideas.repec.org/p/hit/hituec/741.html
   My bibliography  Save this paper

Price Support and Farm Incomes : Comparative Study of Rice Growing Regions in Southern India and Mekong-Delta Vietnam

Author

Listed:
  • JOHNSON, Deepak
  • KUROSAKI, Takashi

Abstract

Drawing on the broad literature on agricultural development and particularly on the contribution of price and non-price factors, this study examines how government support contributes to farm incomes from rice cultivation in two frontier rice-growing regions in Asia: Kerala, southern India and Mekong Delta, Vietnam. We use a detailed case study approach to offer a unique comparison between two best-performing areas that are similar in agroclimatic conditions and institutional trajectories, which is generally wanting in literature. Our farm budget analysis and counterfactual simulations using household-level data show that the local (state-level) price support contributes to more than half of the average crop income per hectare in Kerala. While the per hectare crop income for a single season in Vietnam was significantly lower than in Kerala, the annual incomes were higher due to multiple cropping. We combine these survey-based results with qualitative insights to examine how various factors have led to the observed scenario. This comparative analysis demonstrates the need for specific non-price interventions, particularly in terms of research and extension services, in enhancing incomes for agriculturally advanced regions within developing countries.

Suggested Citation

  • JOHNSON, Deepak & KUROSAKI, Takashi, 2023. "Price Support and Farm Incomes : Comparative Study of Rice Growing Regions in Southern India and Mekong-Delta Vietnam," Discussion Paper Series 741, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:741
    as

    Download full text from publisher

    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/79839/DP741.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jha, Praveen & Acharya, Nilachala, 2011. "Expenditure on the Rural Economy in India’s Budgets since the 1950s: An Assessment," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 1(2), December.
    2. Gulati, Ashok & Fan, Shenggen, 2008. "The dragon and the elephant: Learning from agricultural and rural reforms in China and India," Issue briefs 49, International Food Policy Research Institute (IFPRI).
    3. Binswanger, Hans P. & Khandker, Shahidur R. & Rosenzweig, Mark R., 1993. "How infrastructure and financial institutions affect agricultural output and investment in India," Journal of Development Economics, Elsevier, vol. 41(2), pages 337-366, August.
    4. Shenggen Fan & Ashok Gulati & Sukhadeo Thorat, 2008. "Investment, subsidies, and pro‐poor growth in rural India," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 163-170, September.
    5. Thomas, Jayan Jose, 2011. "Paddy Cultivation in Kerala," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 1(2), December.
    6. Alejandro Nin-Pratt & Bingxin Yu & Shenggen Fan, 2010. "Comparisons of agricultural productivity growth in China and India," Journal of Productivity Analysis, Springer, vol. 33(3), pages 209-223, June.
    7. World Bank, 2020. "Purchasing Power Parities and the Size of World Economies," World Bank Publications - Books, The World Bank Group, number 33623.
    8. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    9. Yujiro Hayami, 1969. "Resource Endowments and Technological Change in Agriculture: U.S. and Japanese Experiences in International Perspective," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(5), pages 1293-1303.
    10. Vaidyanathan, A., 2010. "Agricultural Growth in India: The Role of Technology, Incentives, and Institutions," OUP Catalogue, Oxford University Press, number 9780198064473.
    11. Sajesh, V. K. & Suresh, A., 2016. "Public-Sector Agricultural Extension in India: A Note," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 6(01), July.
    12. Praveen Jha & Nilachala Acharya, 2011. "Expenditure on the Rural Economy in India's Budgets since the 1950s: An Assessment," Journal, Review of Agrarian Studies, vol. 1(2), pages 134-156, July-Dece.
    13. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    14. Talbot, Theodore & Nguyen, Manh Hai, 2013. "The Political Economy of Food Price Policy: The Case of Rice Prices in Vietnam," WIDER Working Paper Series 035, World Institute for Development Economic Research (UNU-WIDER).
    15. Akber, Nusrat & Paltasingh, Kirtti Ranjan & Mishra, Ashok K., 2022. "How can public policy encourage private investments in Indian agriculture? Input subsidies vs. public investment," Food Policy, Elsevier, vol. 107(C).
    16. Sajesh, V. K. & Suresh, A., 2016. "Public-Sector Agricultural Extension in India: A Note," Journal, Review of Agrarian Studies, vol. 6(1), pages 116-131, January-J.
    17. Manh Hai Nguyen & Theodore Talbot, 2013. "The Political Economy of Food Price Policy: the Case of Rice Prices in Vietnam," WIDER Working Paper Series wp-2013-035, World Institute for Development Economic Research (UNU-WIDER).
    18. Pramod Kumar Joshi & Praduman Kumar & Shinoj Parappurathu, 2015. "Public Investment in Agricultural Research and Extension in India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(3), pages 438-451, July.
    19. TRAN Thi Ut & Kei KAJISA, 2006. "The Impact Of Green Revolution On Rice Production In Vietnam," The Developing Economies, Institute of Developing Economies, vol. 44(2), pages 167-189, June.
    20. Vijesh V Krishna & Lagesh M Aravalath & Surjit Vikraman, 2019. "Does caste determine farmer access to quality information?," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-22, January.
    Full references (including those not matched with items on IDEAS)

    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. Deepak Johnson & Takashi Kurosaki, 2024. "Price and Non‐Price Factors in Development of Rice Cultivation: Case Studies From Southern India and Mekong‐Delta Vietnam," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 11(3), September.
    2. Kuyvenhoven, Arie & Ruben, Ruerd & Kruseman, Gideon, 1998. "Technology, market policies and institutional reform for sustainable land use in southern Mali," Agricultural Economics, Blackwell, vol. 19(1-2), pages 53-62, September.
    3. Escobal, Javier, 2005. "The Role of Public Infraestructure in Market Development in Rural Peru," MPRA Paper 727, University Library of Munich, Germany.
    4. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    5. Lambrecht, Isabel & Ragasa, Catherine, 2016. "Do development projects crowd out private-sector activities? A survival analysis of contract farming participation in northern Ghana," IFPRI discussion papers 1575, International Food Policy Research Institute (IFPRI).
    6. Vijesh V Krishna & Lagesh M Aravalath & Surjit Vikraman, 2019. "Does caste determine farmer access to quality information?," PLOS ONE, Public Library of Science, vol. 14(1), pages 1-22, January.
    7. Minten, Bart & Kyle, Steven, 1999. "The effect of distance and road quality on food collection, marketing margins, and traders' wages: evidence from the former Zaire," Journal of Development Economics, Elsevier, vol. 60(2), pages 467-495, December.
    8. Bhargava, Anil K., 2013. "The Impact of India’s Rural Employment Guarantee on Demand for Agricultural Technology," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150163, Agricultural and Applied Economics Association.
    9. Mather, David & Minde, Isaac & Waized, Betty & Ndyetabula, Daniel & Temu, Anna, 2016. "The profitability of inorganic fertilizer use in smallholder maize production in Tanzania: Implications for alternative strategies to improve smallholder maize productivity," Food Security Collaborative Working Papers 245891, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    10. Lambrecht, Isabel Brigitte & Ragasa, Catherine, 2018. "Do development projects crowd-out private sector activities? Evidence from contract farming participation in Northern Ghana," Food Policy, Elsevier, vol. 74(C), pages 9-22.
    11. Liverpool-Tasie, Lenis Saweda, 2012. "Targeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria:," IFPRI discussion papers 1194, International Food Policy Research Institute (IFPRI).
    12. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    13. Smith, Lisa C. & Chavas, Jean-Paul, 1999. "Supply response of West African agricultural households," FCND discussion papers 69, International Food Policy Research Institute (IFPRI).
    14. Sheahan, Megan & Black, Roy & Jayne, T.S., 2013. "Are Kenyan farmers under-utilizing fertilizer? Implications for input intensification strategies and research," Food Policy, Elsevier, vol. 41(C), pages 39-52.
    15. Ersado, Lire, 2005. "Small-scale irrigation dams, agricultural production, and health - theory and evidence from Ethiopia," Policy Research Working Paper Series 3494, The World Bank.
    16. Kurosaki, Takashi & Wada, Kazuya, 2015. "Spatial Characteristics of Long-term Changes in Indian Agricultural Production: District-Level Analysis, 1965-2007," PRIMCED Discussion Paper Series 60, Institute of Economic Research, Hitotsubashi University.
    17. Lovo, Stefania, 2008. "Market Imperfections And Class Structure: The Case Of South Africa," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6675, European Association of Agricultural Economists.
    18. Coxhead, Ian A. & Demeke, Bayou, 2006. "Modeling Spatially Differentiated Environmental Policy in a Philippine Watershed: Tradeoffs between Environmental Protection and Poverty Reduction," 2006 Annual meeting, July 23-26, Long Beach, CA 21115, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Luca Tiberti & Marco Tiberti, 2015. "Rural Policies, Price Change and Poverty in Tanzania: An Agricultural Household Model-Based Assessment," Journal of African Economies, Centre for the Study of African Economies, vol. 24(2), pages 193-229.
    20. Fernando M. Aragón & Francisco Oteiza & Juan Pablo Rud, 2018. "Climate change and agriculture: farmer adaptation to extreme heat," IFS Working Papers W18/06, Institute for Fiscal Studies.

    More about this item

    Keywords

    Farm households; Rice cultivation; Agricultural policy; India; Vietnam; Price support; Infrastructure;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

    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:hit:hituec:741. 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: Hiromichi Miyake (email available below). General contact details of provider: https://edirc.repec.org/data/iehitjp.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.