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India - Effective incentives in India's agriculture : cotton, groundnuts, wheat and rice

Author

Listed:
  • Gulati, Ashok
  • Hanson, James
  • Pursell, Garry

Abstract

This study explicity considers the possibilities of international trade in evaluating the impact of incentives in agriculture. Specifically, the study estimates three standard coefficients (ratios): (a) the nominal protection coefficient (NPC); (b) the effective protection coefficient (EPC); and (c) the effective subsidy coefficient (ESC). The study also includes estimates of the nominal protection coefficient adjusted for a premium on foreign exchange (ANPC) and some discussion of how such a premium would affect the EPCs and ESCs. Four commodities are covered in this study; wheat, rice, cotton and groundnuts. The estimates for the protection coefficients for the four commodities for the 1980s are summarized, and estimates of comparable domestic and world prices are given. Cotton, and to a lesser extent wheat and rice, have been disprotected during the 1980s while groundnuts have received substantial protection. The study also raises a number of important issues that deserve further research.

Suggested Citation

  • Gulati, Ashok & Hanson, James & Pursell, Garry, 1990. "India - Effective incentives in India's agriculture : cotton, groundnuts, wheat and rice," Policy Research Working Paper Series 332, The World Bank.
    • Handle: RePEc:wbk:wbrwps:332
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    Citations

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    Cited by:

    1. Mullen, Kathleen & Sun, Dongsheng & Thomas, Marcelle & Orden, David & Gulati, Ashok, 2004. "Agricultural Policy Interventions In Developing Countries: Mapping The Nature, Degree And Progress Of Reforms," 2004 Annual meeting, August 1-4, Denver, CO 20081, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Pursell, Garry & Gulati, Ashok & Gupta, Kanupriya, 2007. "Distortions to Agricultural Incentives in India," Agricultural Distortions Working Paper Series 48483, World Bank.
    3. Storm, Servaas, 1997. "Agriculture under trade policy reform: A quantitative assessment for India," World Development, Elsevier, vol. 25(3), pages 425-436, March.
    4. Rao, Krishna D. & Kyle, Steven C., 1997. "Effective Incentives And Chickpea Competitiveness In India," Working Papers 127869, Cornell University, Department of Applied Economics and Management.

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