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Public Incentives, Private Investment, and Outlooks for Hybrid Rice in Bangladesh and India

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  • David J. Spielman
  • Patrick S. Ward
  • Deepthi E. Kolady
  • Harun Ar-Rashid

Abstract

The governments of Bangladesh and India have set impressive targets to expand hybrid rice cultivation as part of their national food security strategies for the next decade. Although hybrid rice offers significant yield improvements over varietal rice, adoption by farmers remains low and unstable. This paper analyzes the technical challenges, market opportunities, and policy constraints associated with hybrid rice in both countries. It argues that while many of the technical constraints can be addressed through continued investment in breeding, significant challenges remain relating to product development, marketing, and economic policy. Solutions require new insight into relationships between industry structure, business strategies, and public policy incentives.

Suggested Citation

  • David J. Spielman & Patrick S. Ward & Deepthi E. Kolady & Harun Ar-Rashid, 2017. "Public Incentives, Private Investment, and Outlooks for Hybrid Rice in Bangladesh and India," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 154-176.
  • Handle: RePEc:oup:apecpp:v:39:y:2017:i:1:p:154-176.
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    References listed on IDEAS

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    1. Spielman, David J. & Kolady, Deepthi Elizabeth & Ward, Patrick & Ar-Rashid, Harun & Gulati, Kajal, 2012. "Public expenditures, private incentives, and technology adoption: The economics of hybrid rice in South Asia," IFPRI discussion papers 1233, International Food Policy Research Institute (IFPRI).
    2. Fuglie, Keith & Ballenger, Nicole & Rubenstein, Kelly Day & Klotz, Cassandra & Ollinger, Michael & Reilly, John & Vasavada, Utpal & Yee, Jet, 1996. "Agricultural Research and Development: Public and Private Investments Under Alternative Markets and Institutions," Agricultural Economic Reports 262031, United States Department of Agriculture, Economic Research Service.
    3. Pray, Carl E. & Nagarajan, Latha, 2009. "Pearl millet and sorghum improvement in India:," IFPRI discussion papers 919, International Food Policy Research Institute (IFPRI).
    4. Feder, Gershon, 1980. "Farm Size, Risk Aversion and the Adoption of New Technology under Uncertainty," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 263-283, July.
    5. Thomas Reardon & C. Peter Timmer, 2012. "The Economics of the Food System Revolution," Annual Review of Resource Economics, Annual Reviews, vol. 4(1), pages 225-264, August.
    6. Spielman, David J. & Kolady, Deepthi & Cavalieri, Anthony, 2012. "Public Expenditures, Private Incentives, and Farmer Adoption: The Economics of Hybrid Rice in South Asia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125694, International Association of Agricultural Economists.
    7. World Bank, 2012. "Agricultural Innovation Systems : An Investment Sourcebook [Systèmes d’innovation agricole - Guide d'investissement]," World Bank Publications, The World Bank, number 2247, July.
    8. McFall, William A. & Magnan, Nicholas & Spielman, David J., 2013. "Hybrid Rice as a Pro-Poor Technology? Evidence from Bangladesh," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150150, Agricultural and Applied Economics Association.
    9. Xie, F. & Hardy, B. (ed.), 2009. "Accelerating hybrid rice development," IRRI Books, International Rice Research Institute (IRRI), number 164413.
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    Cited by:

    1. Ward, Patrick S. & Kumar, Neha & De Nicola, Francesca & Hill, Ruth & Makhija, Simrin & Spielman, David J. & Magnan, Nicholas, 2017. "Insuring Against Drought: Evidence on Agricultural Intensification and Demand for Index Insurance from a Randomized Evaluation in Rural Bangladesh," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258090, Agricultural and Applied Economics Association.
    2. Hill, Ruth Vargas & Kumar, Neha & Magnan, Nicholas & Makhija, Simrin & de Nicola, Francesca & Spielman, David J. & Ward, Patrick S., 2017. "Insuring against droughts: Evidence on agricultural intensification and index insurance demand from a randomized evaluation in rural Bangladesh," IFPRI discussion papers 1630, International Food Policy Research Institute (IFPRI).

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    More about this item

    Keywords

    Hybrid rice; agricultural research and development; technological change; innovation; India; Bangladesh;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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