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Achieving food security in a cost effective way

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Author Info
Jha, Shikha
Srinivasan, P.V.
Abstract

"This study evaluates the domestic and international trade and marketing policies in India and analyzes the effects of deregulating domestic markets and liberalizing external trade on the food grain sector. Historically, India's food policy has involved heavy government intervention in all aspects of the food grain market pricing, procurement, stocking, transport and marketing. The Food Corporation of India (FCI) is the principal parastatal agency responsible for marketing food grains within the country and controls nearly 50 percent of the grain markets. An analysis of the performance of the FCI, however, reveals enormous and mounting costs of operations that present a huge financial burden for the Government of India (GOI). This study offers a comparison of the costs and functioning of the FCI with that of private traders, in order to suggest policy options for reform. The results show that private traders operate at costs lower than those incurred by the FCI in both storage and trade, despite several controls and restrictions imposed upon them. Therefore, the finding from this study is that there is a strong case for reform from the efficiency point of view." From Author's Executive Summary

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Paper provided by International Food Policy Research Institute (IFPRI) in its series MTID discussion papers with number 67.

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Date of creation: 2004
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Handle: RePEc:fpr:mtiddp:67

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  2. Goletti, Francesco & Minot, Nicholas, 1997. "Rice markets, agricultural growth, and policy options in Viet Nam," MTID discussion papers 14, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Goletti, Francesco & Minot, Nicholas & Berry, Philippe, 1997. "Marketing constraints on rice exports from Viet Nam," MTID discussion papers 15, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  6. Rola, Agnes & Rola, Walfredo & Tiongco, Marites & Delgado, Christopher L., 2003. "Livestock intensification and smallholders," MTID discussion papers 59, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  8. Kherallah, Mylène & Minot, Nicholas & Gruhn, Peter, 1999. "Adjustment of wheat production to market reform in Egypt," MTID discussion papers 32, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  10. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MSSD discussion papers 47, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  11. Raju , K. V. & Gulati, Ashok & Meinzen-Dick, Ruth Suseela, 2003. "Innovations in irrigation financing," MSSD discussion papers 58, International Food Policy Research Institute (IFPRI). [Downloadable!]
  12. Minot, Nicholas & Kherallah, Mylène & Berry, Philippe, 2000. "Fertilizer market reform and the determinants of fertilizer use in Benin and Malawi," MTID discussion papers 40, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  13. Fafchamps, Marcel & Minten, Bart, 1999. "Property rights in a flea market economy," MTID discussion papers 27, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  14. Dorosh, Paul A. & Shahabuddin, Quazi & Aziz, M. Abdul & Farid, Naser, 2002. "Bumper crops, producer incentives and persistent poverty," MSSD discussion papers 43, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  15. Delgado, Christopher L. & Courbois, Claude & Rosegrant, Mark W., 1998. "Global food demand and the contribution of livestock as we enter the new millennium," MTID discussion papers 21, International Food Policy Research Institute (IFPRI). [Downloadable!]
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  17. Delgado, Christopher L. & Rosegrant, Mark W. & Steinfeld, Henning & Ehui, Simeon K. & Courbois, Claude, 1999. "The growing place of livestock products in world food in the twenty-first century," MTID discussion papers 28, International Food Policy Research Institute (IFPRI). [Downloadable!]
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