Growth and Equity Effects of Agricultural Marketing Efficiency Gains in India

43 Pages Posted: 25 Jan 2010 Last revised: 8 Feb 2010

See all articles by Maurice R. Landes

Maurice R. Landes

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Mary E. Burfisher

U.S. Naval Academy

Date Written: December 1, 2009

Abstract

Agriculture is the largest source of employment in India, and food accounts for about half of consumer expenditures. Moving agricultural products from the farm to consumers more efficiently could result in large gains to producers, consumers, and India’s overall economy. This analysis uses a computable general equilibrium model with agricultural commodity detail and households disaggregated by rural, urban, and income class to study the potential impacts of reforms that achieve efficiency gains in agricultural marketing and reduce agricultural input subsidies and import tariffs. More efficient agricultural marketing generates economywide gains in output and wages, raises agricultural producer prices, reduces consumer food prices, and increases private consumption, particularly by low-income households. These gains could help to offset some of the medium-term adjustment costs for some commodity markets and households associated with reducing agricultural subsidies and tariffs.

Keywords: India, agriculture, policy reform, marketing efficiency, tariffs, subsidies

Suggested Citation

Landes, Maurice R. and Burfisher, Mary E., Growth and Equity Effects of Agricultural Marketing Efficiency Gains in India (December 1, 2009). USDA-ERS Economic Research Report No. 89 , Available at SSRN: https://ssrn.com/abstract=1542066 or http://dx.doi.org/10.2139/ssrn.1542066

Maurice R. Landes (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
202-694-5145 (Phone)

Mary E. Burfisher

U.S. Naval Academy ( email )

589 McNair Road
Annapolis, MD 21402
United States
410-293-6880 (Phone)

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