Food Corporation of India and the Public Distribution System: Impacts on Market Integration in Wheat, Rice, and Pearl Millet

Mindy Mallory () and Kathy Baylis

Journal of Agribusiness, 2012, vol. 30, issue 2

Abstract: We examine the spatial integration of wheat, rice and pearl millet in the Indian states of Bihar, Haryana, and Uttar Pradesh after the reforms of 2002 which liberalized inter-state trade. Our data represent a large share oflndia's cereal grains. The government regulates markets for staple foods heavily; almost all grain is marketed through government licensed markets that impose a price floor. This could discourage private investment in storage capacity among farmers and traders, impacting market integration. We find little evidence of market integration despite the 2002-03 reforms, and this fragmentation is particularly notable for smaller, and less regulated crops.

Keywords: Agribusiness (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ags:jloagb:260210

DOI: 10.22004/ag.econ.260210

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