Medium 9781780642826

International Trade and Food Security: The Future of Indian Agriculture

Views: 472
Ratings: (0)

This book explores structural changes in India's agrifood systems during the next ten to twenty years. The dynamics in the agrifood sector is explored in the context of the overall economy, taking into account agricultural and trade policies and their impacts on national and global markets.ÊThe contributors draw on qualitative and quantitative approaches, using both a national model - to focus on urban-rural relations and income distribution - and an international model to focus on patterns of economic growth and international trade.

List price: $125.00

Your Price: $100.00

You Save: 20%

Remix
Remove
 

15 Slices

Format Buy Remix

1: Introduction

PDF

1 Introduction

Floor Brouwer1* and P.K. Joshi2

LEI Wageningen UR, the Hague, The Netherlands; 2International Food

Policy Research Institute, Pusa, New Delhi, India

1

India has made considerable progress on the overall macro-economic indicators since independence in 1947. The country showed resilience to economic shocks, which was evident during the global food, fuel and financial crisis of 2008–2009. However, agriculture has remained lagging behind the other sectors of the economy and is facing a higher degree of volatility. In the first decade of 21st century, average economic growth was more than 7%, while growth was less than 4% in the agriculture sector on which more than half of the population depends for its livelihood. Although the

Government of India has launched several programmes and reformed policies to increase agricultural production, the target to achieve 4% annual growth rate could not be realized. The main reasons for relatively poor growth in the agriculture sector were falling size and fragmenting of landholdings, near stagnating public investment, increasing pressure of farm subsidies, slowing irrigation expansion, hindering access to credit, marginalizing agricultural labour, and growing environmental stresses. Such factors remain a major challenge to the public sector for accelerating agricultural performance. This needs to create greater space for the private sector engagement, from seeds to

 

2: Transformation of Indian Agriculture Following Economic Liberalization

PDF

2 

Transformation of Indian Agriculture

Following Economic Liberalization

Kavery Ganguly1* and Vijay Laxmi Pandey2

Confederation of Indian Industry (CII), New Delhi; 2Indira Gandhi Institute of Development Research, Mumbai, India

1

Indian Economic and Agricultural

Performance

Agriculture is critical for India, not just from the growth objective, given that it supports a huge agriculture-dependent industry, but because of its pivotal role in ensuring food security of the masses through its larger livelihood opportunities. Hence, it is a tough balancing act for the government and policy makers to design a high growth path for agriculture without neglecting the food security concerns. Since the 1950s, i.e. the post-­

Independence era, the socio-economic scenario has changed favourably in India, with higher economic growth, savings and investment patterns, rising foreign exchange reserves, increasing food production, rising income and reducing poverty levels.1 This is not to deny that there have been rough patches that need strategic intervention and efforts are underway to address and contain the rising adversities. Despite higher economic growth, issues related to malnutrition, declining yet high poverty rates, rising subsidies and inadequate incentives for investments continue to be the key challenges.

 

3: Food Consumption Pattern and Nutritional Security among Rural Households in India: Impact of Cross-cutting Rural Employment Policies

PDF

3 

Food Consumption Pattern and Nutritional

Security among Rural Households in India: Impact of Cross-cutting

Rural Employment Policies

1

Praduman Kumar1* and P.K. Joshi2

Indian Agricultural Research Institute, New Delhi; 2International Food

Policy Research Institute, New Delhi, India

Introduction1

work at the statutory minimum wage. In

2009, these wages were Rs120 (US$2.39)

The Government of India has launched various per day (GoI, 2005). The wages paid under programmes from time to time in order to MGNREGA correspond to the minimum alleviate poverty in rural areas. These include: wages stated by the central government but

Integrated Rural Development Program (IRDP), vary across states. In 2014/15, the per day

Employment Assurance Scheme (EAS), wages varied from Rs154 in Himachal PraPradhan Mantri Rojgar Yojna (Prime Minister desh to Rs236 in Haryana (GoI, 2014).

For operation of a scheme under MGNJob Scheme), Swaranjayanti Gram Swarojgar

 

4: Food Demand and Supply Projections to 2030: India

PDF

4 

Food Demand and Supply Projections to 2030: India

Praduman Kumar1* and P.K. Joshi2

Division of Agricultural Economics, Indian Agricultural Research Institute,

New Delhi; 2International Food Policy Research Institute, New Delhi, India

1

Introduction

Achieving food self-sufficiency has always been the primary objective of agricultural policy in India. Driven by rising population, growing economy, expanding urbanization and changing tastes and preferences, the demand for food is continuously increasing in the country. On the other side, India is facing the problems of plateauing productivity, decreasing farm sizes and diminishing natural resources. This scenario has raised questions such as: ‘Will India be able to produce enough to meet its growing food demand or will it be open for imports of food commodities by 2030? What would be the likely trends of future demand for various food commodities? Will the supply of key food commodities continue to keep pace with their demand?’ These questions need to be answered in order to evolve an appropriate strategy for meeting the future demand for food commodities in India. In this chapter, an attempt has been made to project the demand for and supply of key food commodities by 2020 and 2030. It also assesses their trade potential by computing demand– supply gaps. This information will help to evolve appropriate medium- and long-term strategies in the Indian food sector.

 

5: Indian Economic Growth and Trade Agreements: What Matters for India and for Global Markets?

PDF

5 

Indian Economic Growth and Trade

Agreements: What Matters for India and for Global Markets?

Geert Woltjer* and Martine Rutten

Public Issues Division, LEI Wageningen UR, The Hague, The Netherlands

Introduction

India is one of the fastest growing economies in the world. Despite global downturn, India has recorded an average growth rate of 7.6% per year over the past decade

(IMF, 2012), with growth expected to rise again to 6.3% in 2014. This growth rate is well above the 2.1% growth estimated for the advanced economies (including the

USA, the Euro area and Japan) and the 3.8% growth for the world average (IMF, 2013).

Given that India has a relatively large population of over 1.2 billion, which is estimated to grow to around 1.6 billion by 2050 (UN,

2012), it is very likely that the development path followed by India influences the world economy. India’s trade with the world is estimated at €815 billion in 2012, which represents a fairly small share of less than 2% in world trade (WTO, 2012; European Commission, 2013). Although India is currently little integrated with the world economy, merchandise trade is growing fast at a rate of 17% per year since 2005, which is more than twice the global growth rate (WTO,

 

6: India: Economic Growth and Income Distribution in Rural and Urban Areas

PDF

6 

India: Economic Growth and Income

Distribution in Rural and Urban Areas

G. Mythili*

Indira Gandhi Institute of Development Research, Mumbai, India

Introduction

India has registered an impressive gross

­domestic product (GDP) growth of 7–8% after launching economic liberalization in 1991.

Reforms were initiated in the public sector, financial sector and investment and trade regimes and this helped in better integration with the global economy. However, its crucial sector, agriculture, which is the source of livelihood for nearly two-thirds of the population, has lost its momentum. The sector is lagging behind at less than 3% growth and its share in GDP is falling sharply over the years. Moreover, the economy has witnessed a significant structural transformation in both agricultural production and consumption in the past decade or so.

The performance of the economy over the years has been marked by higher rates of savings, investments, and improvements in many other macroeconomic indicators. The investment to GDP ratio went up to 34% in

 

7: Food Safety Standards for Domestic and International Markets: The Case of Dairy

PDF

7 

Food Safety Standards for Domestic and

International Markets: The Case of Dairy

Anneleen Vandeplas*1,2 and Mara P. Squicciarini2

European Commission, Brussels, Belgium; 2LICOS, Center for Institutions and Economic Performance, KU Leuven, Belgium

1

Introduction

Several chapters in this volume address the question of how demand and supply for key food commodities will evolve in India over the next 20 years, and in particular, whether

India will become deficit or surplus in these commodities by 2030. This is a question of high policy relevance to Indian policy makers, who have historically attached major importance to the issue of food self-sufficiency; in other words, of being able to produce all food commodities it needs by itself.1 However, over the next decades, quantitative considerations of food supply may need to be complemented by qualitative considerations as concerns for food safety and quality2 are becoming increasingly important.

 

8: India’s Poultry Sector: Trade Prospects

PDF

8 

India’s Poultry Sector: Trade Prospects

Rajesh Mehta,1* R.G. Nambiar2 and P.K. Joshi3†

Formerly of Research and Information System for Developing

Countries, New Delhi; 2FLAME University, Pune, Maharashtra;

3

International Food Policy Research Institute, New Delhi, India

1

Introduction

Today, poultry is one of the fastest growing segments of Indian agriculture and the poultry industry is growing at the rate of

8–10% per annum. India is also the third largest producer of eggs and the sixth largest producer of chicken meat in the world and has the potential to emerge as the world leader in poultry. India is also an exporter of poultry meat and eggs to the European

Union (EU), the Middle East and neighbouring South Asian countries. As of today, Indian poultry exports constitute only a fraction of the total world trade. The domestic poultry industry is definitely price competitive, and India is gifted with natural resources that favour the growth of poultry.

 

9: Employment Guarantee Programme and Income Distribution

PDF

9 

Employment Guarantee Programme and Income Distribution

G. Mythili*

Indira Gandhi Institute of Development Research, Mumbai, India

Introduction

The Government of India has launched many schemes for the generation of additional income for the poor. One such scheme which has received the attention of many economists and political analysts is the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

It is basically an employment generation programme for the rural poor households with the policy of direct transfer of money to them through provision of public works.

The scheme stems from the enactment of the National Rural Employment Guarantee

Act (NREGA) notified in September 2005, which was later renamed as the Mahatma

Gandhi National Rural Employment Guarantee Act (MGNREGA). It intends to enhance the livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult member volunteers to do unskilled manual work.1

 

10: India’s Price Support Policies and Global Food Prices

PDF

10 

India’s Price Support Policies and

Global Food Prices

Gerdien Meijerink1* and P.K. Joshi2

CPB Netherlands Bureau for Economic Policy Analysis, The Hague,

The Netherlands; 2International Food Policy Research Institute, New Delhi, India

1

Introduction

The agricultural price policy of India aims to achieve the twin objectives of assuring remunerative prices to the farmers and providing food grains to the consumers at reasonable prices (GoI, 2012). The price policy was designed during the green revolution period to ensure farmers received minimum support prices (MSPs) and assured procurement of their produce. The policy of subsidizing food grains was developed during the period of relative shortage of agricultural products, particularly of food grains. Several policy instruments and complementary policies have been implemented to achieve these twin objectives (see also MoSPI, 2012). India also has a targeted public distribution system (TPDS) to improve the food security of

 

11: Biofuel Commitments in India and International Trade

PDF

11 

Biofuel Commitments in India and International Trade

Geert Woltjer* and Edward Smeets

LEI Wageningen UR, The Hague, The Netherlands

Introduction

The production and use of biofuels has increased rapidly during the past several years.

Global ethanol production has increased from

48 billion l in 2005 to 113 billion l in 2012 and biodiesel production has increased from

5.3 billion l to 28 billion l (FAO and OECD,

2012). As of today, more than 50 countries across the world, including India, have implemented biofuel policies (Sorda et al., 2010).

These policies typically consist of subsidies on biofuel use or production or biofuel blending mandates.

The recent rise in use of biofuels is driven by the concerns over energy security, climate change and rising fossil fuel prices as well as the additional demand for agricultural commodities. Consequently, rising farm incomes form important benefits of these biofuel policies. Furthermore, biofuels are often seen as a stimulant for rural development and employment.

 

12: Input Subsidy versus Farm Technology – Which is More Important for Agricultural Development?

PDF

12 

Input Subsidy versus Farm

Technology – Which is More Important for Agricultural Development?

Praduman Kumar1* and P.K. Joshi2

Division of Agricultural Economics, Indian Agricultural Research Institute,

New Delhi; 2International Food Policy Research Institute, New Delhi, India

1

Introduction1

Input subsidy and technology are the two significant factors for the development of agriculture in India. Concerns are often expressed about a decrease or increase in input subsidy and inadequate investment in farm technology development. Policy planners often face questions such as what would happen to output supply, factor demand, agricultural prices and farmer income under alternative input subsidy and farm technology scenarios, and what would be the impact of input subsidy and technological innovation on the welfare of producer and consumer?

The rising costs of farm inputs discourage their use and lead to a reduction in agro-commodity supply and profitability of farmers. The decline in supply of these commodities raises their market prices, causing hardships to the consumers. On the other hand, a rise in crop prices is needed not only to counteract the rising input costs but also to provide sufficient margin to the farmers, which may be conducive to investment in agriculture. The situation can be managed by manipulating price and non-price factors through subsidy, investment in irrigation, capital inputs, technology development,

 

13: High-value Production and Poverty: The Case of Dairy in India

PDF

13 

High-value Production and Poverty:

The Case of Dairy in India

Anneleen Vandeplas,1,2* Mara P. Squicciarini1 and Johan F.M. Swinnen1

1

LICOS, Center for Institutions and Economic Performance

KU Leuven, Belgium; 2European Commission, Brussels, Belgium

Introduction1

is traditionally considered as a sector that has strong potential for pro-poor growth in the

Rising incomes and expanding urbanization country (Das, 2006; Goswami, 2007). Dairy are rapidly changing dietary patterns in India animals have traditionally been serving as and other Asian countries. People are not the main source of draught power in the only consuming more food, but also diversify- fields, as well as for subsistence milk proing increasingly towards high-value commod- duction. The Indian dairy sector is dominities, such as fruits, vegetables, dairy products, ated by small production units (hence, with meat, fish, eggs, etc. (Kumar and Birthal, a small number of animals). This means that

 

14: Changing Structure of Retail in India: Looking Beyond Price Competition

PDF

14 

Changing Structure of Retail in India:

Looking Beyond Price Competition

Devesh Roy,1* Shwetima Joshi,2 P.K. Joshi1 and Bhushana Karandikar3

1

International Food Policy Research Institute, New Delhi,

India; 2University of Texas, El Paso, USA; 3 Indian School of

Political Economy, Pune, India

Introduction

The food and grocery segment in organized retail has been growing at a fast pace in

India. The compound annual growth rate of food and grocery in organized retail has been estimated to be 16% during 2004–2007

(Joseph et al., 2008). The India Retail Report

(GoI, 2007) put the growth rate of the organized food and grocery sector at 42% in 2006 over 2005. The report by Planet Retail

(2004) projected the sales of the top five

­grocery retailers in India to grow from US$1 billion in 2007 to US$15 billion in 2012, a

15-fold increase in 5 years. It is expected that these changes comprising the growth of the organized sector vis-à-vis unorganized retail would be more pronounced with

 

15: Conclusions and Way Forward

PDF

15 

Conclusions and Way Forward

P.K. Joshi1* and Floor Brouwer2

International Food Policy Research Institute, New Delhi, India;

2

LEI Wageningen, UR, The Hague, The Netherlands

1

Introduction

India has registered impressive economic growth of 7–8% following economic liberalization in 1991. Consequently, there has generally been a reduction in poverty levels in both rural and urban areas, and the impact is clearly visible during the post-reform period.

Agriculture also performed better during the previous decade with an average annual growth rate of more than 3.5%. The agricultural sector witnessed a structural transformation which was not just restricted to the farm sector. Unfolding patterns include integration of agriculture with other non-farm activities (e.g. processing and retailing), farmers linkages with markets, and opening-up of the economy for many agricultural commodities for trade. The paradigm shift was a result of various policy initiatives and reforms in agricultural and non-agricultural sectors.

 

Details

Print Book
E-Books
Slices

Format name
PDF
Encrypted
No
Sku
BPP0000176079
Isbn
9781780642826
File size
8.21 MB
Printing
Allowed
Copying
Allowed
Read aloud
Allowed
Format name
PDF
Encrypted
No
Printing
Allowed
Copying
Allowed
Read aloud
Allowed
Sku
In metadata
Isbn
In metadata
File size
In metadata