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Foodgrain price stabilization in developing countries

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Author Info

  • Islam, Nurul
  • Thomas, Saji

Abstract

The government of almost every country has intervened in the market pricing of foodgrains to promote price stability. But the rules of the game are changing as countries abandon trade restrictions and protectionist policies in the wake of the Uruguay Round agreement of the General Agreement on Tariffs and Trade (GATT). Will food prices fluctuate more or less with trade liberalization? Foodgrain Price Stabilization in Developing Countries: Issues and Experiences in Asia, Food Policy Review 3, by Nurul Islam and Saji Thomas, looks at these issues from three perspectives. The first part reviews the literature and briefly summarizes the macro and micro policies that governments in developing countries have adopted to stabilize prices. It also considers alternative policies that do not seek to stabilize prices per se but deal with the consequences of price instability for food producers and consumers, such as crop insurance or futures markets. The second part focuses on the foodgrain price stabilization experiences of five developing countries in Asia, the circumstances underlying price stabilization policy for rice and wheat over time in each country, and the design and implementation of the schemes adopted. The third part examines the implications of the policies adopted for future price stability.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series Food policy reviews with number 3.

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Date of creation: 1996
Date of revision:
Handle: RePEc:fpr:fprevi:3

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Related research

Keywords: Grain Prices Asia. ; Food prices Asia. ; Grain trade Asia. ; Price maintenance Asia. ; Food policies. ;

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Cited by:
  1. Ntsama, Mireille, 2012. "La relation de prix entre le Cameroun et le Gabon
    [Is there a food price transmission between Cameroon and Gabon?]
    ," MPRA Paper 53771, University Library of Munich, Germany, revised 03 May 2013.
  2. Duncan, Ronald C., 1997. "World food markets into the 21st century: commodity risk management policies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), September.
  3. Chen, Jing & Rozelle, Scott & Carter, Colin A., 1999. "Grain Price Stability And Farmer Decision Making In China," 1999 Annual meeting, August 8-11, Nashville, TN 21538, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Martinez, Elmer & Shively, Gerald E. & Masters, William J., 1998. "Testing The Link Between Public Intervention And Food Price Variability: Evidence From Rice Markets In The Philippines," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20883, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Jha, Shikha & Srinivasan, P. V., 1999. "Grain price stabilization in India: Evaluation of policy alternatives," Agricultural Economics, Blackwell, vol. 21(1), pages 93-108, August.
  6. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MSSD discussion papers 46, International Food Policy Research Institute (IFPRI).
  7. Rashid, Shahidur & Cummings, Ralph Jr. & Gulati, Ashok, 2005. "Grain marketing parastatals in Asia," MTID discussion papers 80, International Food Policy Research Institute (IFPRI).
  8. Srinivasan, P. V. & Jha, Shikha, 2001. "Liberalized trade and domestic price stability. The case of rice and wheat in India," Journal of Development Economics, Elsevier, vol. 65(2), pages 417-441, August.
  9. Gouel, Christophe & Jean, Sebastien, 2012. "Optimal food price stabilization in a small open developing country," Policy Research Working Paper Series 5943, The World Bank.
  10. Myers, Robert J., 2006. "On the costs of food price fluctuations in low-income countries," Food Policy, Elsevier, vol. 31(4), pages 288-301, August.
  11. Dorosh, Paul A. & Minten, Bart, 2006. "Rice Price Stabilization in Madagascar: Price and Welfare Implications of Variable Tariffs," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25478, International Association of Agricultural Economists.
  12. Dorosh, Paul A., 2001. "Trade Liberalization and National Food Security: Rice Trade between Bangladesh and India," World Development, Elsevier, vol. 29(4), pages 673-689, April.
  13. Villoria, Nelson & Lee, David R., 2002. "The Andean Price Band System: Effects On Prices, Protection And Producer Welfare," 2002 Annual meeting, July 28-31, Long Beach, CA 19751, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  14. Diaz-Bonilla, Eugenio & Robinson, Sherman & Thomas, Marcelle, 2002. "On boxes, contents, and users," TMD discussion papers 82, International Food Policy Research Institute (IFPRI).

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