Food Security in India: Does the Futures Market for Wheat Meet the Bill?

12 Pages Posted: 17 Dec 2007

See all articles by K. V. Bhanu Murthy

K. V. Bhanu Murthy

University of Delhi - School of Economics - Commerce Department

Date Written: 2007

Abstract

The thrust of agricultural policy during the sixties and seventies was towards restriction on trade. While this might have been the justified in the years of shortages the present trend towards surplus production of foodgrains necessitates a review of such restrictive policies. Also agricultural policy needs to tap the potential of the market by creating the necessary price incentive and the information processing mechanism of the market so as to ensure long-term food security. An efficient commodity futures market along with removal of restrictions may be the right long term strategy for India's food security.

In this context this paper seeks to analyze the long term trends in area, production, yield and prices of Wheat. It dwells upon the question of whether futures' trading in wheat is integrated with the long-term trends and relationships in Indian Agriculture.

Keywords: Agricultural Markets, Food Security, Commodity Futures Market, Restrictions on internal trade

JEL Classification: Q11, Q13, Q18, Q19

Suggested Citation

Murthy, K. V. Bhanu, Food Security in India: Does the Futures Market for Wheat Meet the Bill? (2007). Available at SSRN: https://ssrn.com/abstract=1073702 or http://dx.doi.org/10.2139/ssrn.1073702

K. V. Bhanu Murthy (Contact Author)

University of Delhi - School of Economics - Commerce Department ( email )

59 Vaishali Enclave
Pitampura
Delhi, 110034
India
+91 11 27667891 (Phone)

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