Positive and Normative Aspects of Food Policy and the Market in Indian Agriculture-An Empirical Analysis of Government Policy Interventions in Food Management

Munish Alagh

No WP2013-01-01, IIMA Working Papers from Indian Institute of Management Ahmedabad, Research and Publication Department

Abstract: This paper begins by outlining the views of economists on food management and contemporary food policy issues in the backdrop of largely unchanging dynamics of slow growth of the farm sector in India. First we deal with the manner in which the changing situation is dealt with in terms of cycles in the wheat market. We also outline the analysis of how the effects of government policy including subsidizing import is dealt with in the policy literature. We then empirically examine the welfare impacts of the policy of subsidies on imports alongside high Support Prices. Finally debates on high support prices are discussed. We sum up this paper with the argument that the need for food management in India, under conditions of global volatility, risk and uncertainty is obvious to any sensitive analyst of Indian Agriculture. Efficiency and reform in food management policies and administration in relation to clearly stated welfare objectives is the need of the hour.

Date: 2013-01-08
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