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The Role of Policy and Industry Structure in India's Oilseed Markets

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Author Info

  • Persaud, Suresh Chand
  • Landes, Maurice R.

Abstract

High tariff and nontariff protection of the Indian oilseed sector imposes costs on consumers, supports an inefficient processing industry, and has led to negligible gains in oilseed output. Model-based simulations indicate that higher levels of protection would increase the burden on consumers, but do little to meet key policy goals of supporting producers and reducing import dependence. A shift to direct support of oilseed producer prices would increase output, but may be complex to implement and subject to WTO discipline. Liberalization of oilseed imports, by permitting large gains in processing efficiency, could generate a stream of benefits that would allow producers, consumers, and processors to be better off, and also improve the trade balance.

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Bibliographic Info

Paper provided by United States Department of Agriculture, Economic Research Service in its series Economic Research Report with number 7218.

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Date of creation: 2007
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Handle: RePEc:ags:uersrr:7218

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Keywords: India; oilseeds; soybeans; vegetable oil; meal; processing industry; industry structure; policy; trade liberalization; Agricultural and Food Policy; Industrial Organization;

References

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  1. Dev, S. Mahendra & Ravi, C. & Viswanathan, Brinda & Gulati, Ashok & Ramachander, Sangamitra, 2004. "Economic liberalisation targeted programmes and household food security," MTID discussion papers 68, International Food Policy Research Institute (IFPRI).
  2. Sudhir Chaudhary, 1997. "Government Intervention and Trends in the Indian Oilseeds Sector: An Analysis of Alternative Policy Scenarios," Center for Agricultural and Rural Development (CARD) Publications 97-wp179, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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Cited by:
  1. Privitera, Donatella & Rognetta, Bernardo, 2008. "Caratteristiche e mutamenti del commercio agro-alimentare: un confronto fra Italia ed India," 2008 XVI Convegno Annuale SIEA - Le Dinamiche del Commercio Agro-alimentare Tra Commodities e Prodotti Differenziati, 5-6 Giugno 2008, Trieste 48177, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA).
  2. Pursell, Garry & Gulati, Ashok & Gupta, Kanupriya, 2007. "Distortions to Agricultural Incentives in India," Agricultural Distortions Working Paper 48483, World Bank.

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