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Factor Demand, Output Supply Elasticities and Supply Projections for Major Crops of India

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  • Kumar, Praduman
  • Shinoj, P.
  • Raju, S.S.
  • Kumar, Anjani
  • Rich, Karl M.
  • Msangi, Siwa

Abstract

Policy planners face the challenge of formulating suitable agricultural policy by which the required growth in domestic production can be achieved. To attain effective food security policy, one needs reliable empirical knowledge about the degree of responsiveness of factor demand and output supply for commodities. This paper is an attempt in this direction and estimates the factor demand and output supply elasticity for major crops grown in India. These elasticities are used to project the domestic supply of major commodities, viz. rice, wheat, pulse grains, nine major edible oilseeds, and sugarcane under various scenarios with and without acreage expansion and TFP growth. The results of supply projections are compared with the food demand and policy prescription to attain food security is suggested.

Suggested Citation

  • Kumar, Praduman & Shinoj, P. & Raju, S.S. & Kumar, Anjani & Rich, Karl M. & Msangi, Siwa, 2010. "Factor Demand, Output Supply Elasticities and Supply Projections for Major Crops of India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 23(1), January.
    • Handle: RePEc:ags:aerrae:92090
    DOI: 10.22004/ag.econ.92090
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    References listed on IDEAS

    as
    1. Kumar, Praduman & Mittal, Surabhi & Hossain, Mahabub, 2008. "Agricultural Growth Accounting and Total Factor Productivity in South Asia: A Review and Policy Implications," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 21(2).
    2. Kumar, Praduman & Mittal, Surabhi, 2006. "Agricultural Productivity Trends in India: Sustainability Issues," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 19(Conferenc).
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    Cited by:

    1. David Atkin & Benjamin Faber & Thibault Fally & Marco Gonzalez-Navarro, 2020. "Measuring Welfare and Inequality with Incomplete Price Information," NBER Working Papers 26890, National Bureau of Economic Research, Inc.
    2. Akash Malhotra, 2021. "A hybrid econometric–machine learning approach for relative importance analysis: prioritizing food policy," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 549-581, September.
    3. Rahul Anand & Naresh Kumar & Mr. Volodymyr Tulin, 2016. "Understanding India’s Food Inflation: The Role of Demand and Supply Factors," IMF Working Papers 2016/002, International Monetary Fund.
    4. Góral, Justyna & Rembisz, Włodzimierz, 2020. "The Model of Demand for Production Factors in Agriculture," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 311224, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    5. Thibault Fally & James Sayre, 2018. "Commodity Trade Matters," 2018 Meeting Papers 172, Society for Economic Dynamics.
    6. Atkin, David & Faber, Benjamin & Fally, Thibault & Gonzalez-Navarro, Marco, 2020. "A New Engel on Price Index and Welfare Estimation," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5rn3m26v, Department of Agricultural & Resource Economics, UC Berkeley.
    7. repec:zib:zbmahj:v:2:y:2022:i:1:p:34-39 is not listed on IDEAS
    8. Thomas, Lijo & Jha, Girish Kumar & Pal, Suresh, 2013. "External Market Linkages and Instability in Indian Edible Oil Economy: Implications for Self-sufficiency Policy in Edible Oils," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2).
    9. Tara Mitchell, 2014. "Is Knowledge Power? Competition and Information in Agricultural Markets," The Institute for International Integration Studies Discussion Paper Series iiisdp456, IIIS.
    10. Akash Malhotra, 2018. "A hybrid econometric-machine learning approach for relative importance analysis: Prioritizing food policy," Papers 1806.04517, arXiv.org, revised Aug 2020.
    11. David Atkin & Benjamin Faber & Thibault Fally & Marco Gonzalez-Navarro, 2024. "Measuring Welfare and Inequality with Incomplete Price Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(1), pages 419-475.
    12. Akash Malhotra & Mayank Maloo, 2017. "Understanding food inflation in India: A Machine Learning approach," Papers 1701.08789, arXiv.org.
    13. Kumar, Praduman & Joshi, P.K., 2014. "Input Subsidy vs Farm Technology — Which is More Important for Agricultural Development?," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 27(1).
    14. Giraud, Georges, 2013. "The World Market of Fragrant Rice, Main Issues and Perspectives," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(2), pages 1-20, May.
    15. Shinoj Parappurathu & Anjani Kumar & Shiv Kumar & Rajni Jain, 2014. "A Partial Equilibrium Model for Future Outlooks on Major Cereals in India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 8(2), pages 155-192, May.
    16. Suchismita Mohapatra & Kumbha Karna Rout & Chandramani Khanda & Amit Mishra & Sudhir Yadav & Rajeev Padbhushan & Ajay Kumar Mishra & Sheetal Sharma, 2023. "Evaluation of Different Potassium Management Options under Prevailing Dry and Wet Seasons in Puddled, Transplanted Rice," Sustainability, MDPI, vol. 15(7), pages 1-17, March.

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    Keywords

    Agricultural and Food Policy;

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