Negotiating G2G Contracts for India’s Pulses Importing
33 Pages Posted: 23 Dec 2019
Date Written: December 18, 2019
• Problem Definition: We study operational strategies to dependably improve India’s pulses importing.
• Academic/Practical Relevance: The large low-income and/or vegetarian population in India depends heavily on pulses for affordable and/or accessible protein intake. India’s domestic pulses productivity is low, uncertain, and unlikely to change in the short term, leaving importing as the most promising area of improvement.
• Methodology: We adopt the Nash bargaining framework for our theoretical analysis, and calibrate the model with publicly available data for numerical experiments.
• Results: We show that two strategies—negotiating multiple-sourcing and non-exclusive forward contracts—can dependably improve India’s pulses importing performances.
• Managerial Implications: Our findings suggest that the Indian government should simultaneously negotiate multiple long-term contracts, and engage current major exporters, to maximize the effectiveness of its pulses importing policies.
Keywords: Nash bargaining, long-term contracts, forward contracts, Nash-in-Nash, supply chain coordination
Suggested Citation: Suggested Citation