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Price Support and Farm Incomes : Comparative Study of Rice Growing Regions in Southern India and Mekong-Delta Vietnam

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  • JOHNSON, Deepak
  • KUROSAKI, Takashi

Abstract

Drawing on the broad literature on agricultural development and particularly on the contribution of price and non-price factors, this study examines how government support contributes to farm incomes from rice cultivation in two frontier rice-growing regions in Asia: Kerala, southern India and Mekong Delta, Vietnam. We use a detailed case study approach to offer a unique comparison between two best-performing areas that are similar in agroclimatic conditions and institutional trajectories, which is generally wanting in literature. Our farm budget analysis and counterfactual simulations using household-level data show that the local (state-level) price support contributes to more than half of the average crop income per hectare in Kerala. While the per hectare crop income for a single season in Vietnam was significantly lower than in Kerala, the annual incomes were higher due to multiple cropping. We combine these survey-based results with qualitative insights to examine how various factors have led to the observed scenario. This comparative analysis demonstrates the need for specific non-price interventions, particularly in terms of research and extension services, in enhancing incomes for agriculturally advanced regions within developing countries.

Suggested Citation

  • JOHNSON, Deepak & KUROSAKI, Takashi, 2023. "Price Support and Farm Incomes : Comparative Study of Rice Growing Regions in Southern India and Mekong-Delta Vietnam," Discussion Paper Series 741, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:741
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    File URL: https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/79839/DP741.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Farm households; Rice cultivation; Agricultural policy; India; Vietnam; Price support; Infrastructure;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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