Impact Evaluation of Traditional Basmati Rice Cultivation in Uttarakhand State of Northern India: What Implications Does It Hold for Geographical Indications?

Pradyot Jena and Ulrike Grote

World Development, 2012, vol. 40, issue 9, 1895-1907

Abstract: This paper contributes to the impact evaluation of GIs by carrying out a case study of Basmati rice in India. Although Basmati rice is not yet an official GI, its long standing reputation for quality and GI-like protection by major importing countries except the United States (US) has rendered it a mirror image of a GI good. The analysis is based on a survey of 299 Basmati and nonBasmati rice farmers in Uttarakhand, one of the Northern states1India, officially Republic of India is a republic comprised of 28 constituent states and seven Union territories. These states and union territories are partially self-governing states or regions united by a central (federal) government. In India, this self-governing status of the component states is typically constitutionally entrenched and may not be altered by a unilateral decision of the central government.1 of India. The empirical strategy of the paper is three-pronged. First, a net income analysis has been carried out to elicit the net benefits of Basmati rice as opposed to nonBasmati rice and another competing crop in that region such as sugarcane. The findings show that Basmati rice is more profitable than the nonBasmati varieties but less so than sugarcane. In the second stage, the endogeneity-corrected Heckman selection model reveals that Basmati adoption has increased welfare of the households. Finally, a Tobit model is estimated to investigate the determining factors of Basmati adoption among the farmer households. The determining factors are found to be access to extension training facilities, a credible hedge against risk, and the availability of household labor.

Keywords: geographical indication; Basmati rice; impact evaluation; Heckman selection model; Asia; India (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:40:y:2012:i:9:p:1895-1907

DOI: 10.1016/j.worlddev.2012.04.004

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