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Impact of Trade Liberalization on Returns from Land: A Regional Study of Indian Agriculture

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  • Nilabja Ghosh

Abstract

Trade liberalization, by aligning domestic prices with world prices, is envisaged to bring welfare gains to a country. In the case of Indian agriculture, owing to the vastness and diversity of the sector, the impact is likely to be profoundly unequal across regions especially when liberalization is double-edged, acting on both output and input sides. This paper views returns from land resource as a primary determinant of farmers’ economic well-being and production incentive and considers paddy both as the dominant support for the rural population and as a product with comparative advantage, as most studies have demonstrated. Working with state and sub-state level data and taking account of the differences in technologies, productivities and transport costs, the paper finds that the gains vary regionally and may not be positive in all cases when both output and input prices are globally aligned. [Discussion Paper No. 2003/50]

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  • Nilabja Ghosh, 2010. "Impact of Trade Liberalization on Returns from Land: A Regional Study of Indian Agriculture," Working Papers id:3156, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:3156
    Note: Institutional Papers
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    1. Jagdish Bhagwati & Arvind Panagariya & T. N. Srinivasan, 1998. "Lectures on International Trade, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262522470, December.
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    1. Ghosh, Nilabja, 2004. "Reducing dependence on chemical fertilizers and its financial implications for farmers in India," Ecological Economics, Elsevier, vol. 49(2), pages 149-162, June.

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    Keywords

    rice; state-trading; cost of cultivation; India; agriculture; globalization;
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