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Would Indian farmers benefit from liberalization of world cotton and sugar markets

Agricultural economics, 2008-05, Vol.38 (3), p.301-312 [Peer Reviewed Journal]

2008 International Association of Agricultural Economists ;ISSN: 0169-5150 ;EISSN: 1574-0862 ;DOI: 10.1111/j.1574-0862.2008.00301.x

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  • Title:
    Would Indian farmers benefit from liberalization of world cotton and sugar markets
  • Author: Mittal, Surabhi ; Reimer, Jeffrey J
  • Subjects: Cotton ; India ; OECD ; Sugar ; sugars ; Trade liberalization
  • Is Part Of: Agricultural economics, 2008-05, Vol.38 (3), p.301-312
  • Description: Rich-country support programs for cotton and sugar producers are frequently claimed to be detrimental for developing-country farmers. This study investigates whether a reduction in protectionist policies for Organization for Economic Cooperation and Development cotton and sugar producers would have a measurable effect on the welfare of Indian farmers. The fact that these sectors are intensively regulated within India might suggest that any such effect will be small. However, this study shows econometrically that prices in Indian rural markets closely follow world prices, and that Indian farmers are flexible in the medium to long run in changing production according to price signals from these markets. Depending on the crop and the nature of liberalization, producer surplus increases from 4.2% to 22.3% in the long run.
  • Publisher: Malden, USA: Blackwell Publishing Inc
  • Language: English;Dutch
  • Identifier: ISSN: 0169-5150
    EISSN: 1574-0862
    DOI: 10.1111/j.1574-0862.2008.00301.x
  • Source: Alma/SFX Local Collection
    RePEc

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