India - Effective incentives in India's agriculture: cotton, groundnuts, wheat and rice

Ashok Gulati, James Hanson and Garry Pursell

No 332, Policy Research Working Paper Series from The World Bank

Abstract: This study explicity considers the possibilities of international trade in evaluating the impact of incentives in agriculture. Specifically, the study estimates three standard coefficients (ratios): (a) the nominal protection coefficient (NPC); (b) the effective protection coefficient (EPC); and (c) the effective subsidy coefficient (ESC). The study also includes estimates of the nominal protection coefficient adjusted for a premium on foreign exchange (ANPC) and some discussion of how such a premium would affect the EPCs and ESCs. Four commodities are covered in this study; wheat, rice, cotton and groundnuts. The estimates for the protection coefficients for the four commodities for the 1980s are summarized, and estimates of comparable domestic and world prices are given. Cotton, and to a lesser extent wheat and rice, have been disprotected during the 1980s while groundnuts have received substantial protection. The study also raises a number of important issues that deserve further research.

Keywords: Economic Theory&Research; Environmental Economics&Policies; Crops&Crop Management Systems; Agricultural Research; Access to Markets (search for similar items in EconPapers)
Date: 1990-01-31
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Citations: View citations in EconPapers (4)

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