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Growth and Equity Effects of Agricultural Marketing Efficiency Gains in India


  • Landes, Maurice R.
  • Burfisher, Mary E.


Agriculture is the largest source of employment in India, and food accounts for about half of consumer expenditures. Moving agricultural products from the farm to consumers more efficiently could result in large gains to producers, consumers, and India’s overall economy. This analysis uses a computable general equilibrium model with agricultural commodity detail and households disaggregated by rural, urban, and income class to study the potential impacts of reforms that achieve efficiency gains in agricultural marketing and reduce agricultural input subsidies and import tariffs. More efficient agricultural marketing generates economywide gains in output and wages, raises agricultural producer prices, reduces consumer food prices, and increases private consumption, particularly by low-income households. These gains could help to offset some of the medium-term adjustment costs for some commodity markets and households associated with reducing agricultural subsidies and tariffs.

Suggested Citation

  • Landes, Maurice R. & Burfisher, Mary E., 2009. "Growth and Equity Effects of Agricultural Marketing Efficiency Gains in India," Economic Research Report 55959, United States Department of Agriculture, Economic Research Service.
  • Handle: RePEc:ags:uersrr:55959

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    References listed on IDEAS

    1. Gulati, Ashok & Narayanan, Sudha, 2003. "The Subsidy Syndrome in Indian Agriculture," OUP Catalogue, Oxford University Press, number 9780195662061, June.
    2. Landes, Maurice R. & Jha, Shikha & Srinivasan, P.V., 2007. "Indian Wheat and Rice Sector Policies and the Implications of Reform," Economic Research Report 6386, United States Department of Agriculture, Economic Research Service.
    3. A. Ganesh-Kumar & Manoj Panda & Mary E. Burfisher, 2006. "Reforms in Indian Agro-processing and Agriculture Sectors in the Context of Unilateral and Multilateral Trade Agreements," Trade Working Papers 22408, East Asian Bureau of Economic Research.
    4. Persaud, Suresh Chand & Landes, Maurice R., 2007. "The Role of Policy and Industry Structure in India's Oilseed Markets," Economic Research Report 7218, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Minten, Bart & Tamru, Seneshaw & Engida, Ermias & Kuma, Tadesse, 2013. "Using evidence in unraveling food supply chains in Ethiopia: The supply chain of teff from major production areas to Addis Ababa:," ESSP working papers 54, International Food Policy Research Institute (IFPRI).
    2. Minten, Bart J. & Legesse, Ermias & Beyene, Seneshaw & Werako, Tadesse, 2015. "Feeding Africa's cities: The case of the Supply Chain of Teff to Addis Ababa," 2015 Conference, August 9-14, 2015, Milan, Italy 212465, International Association of Agricultural Economists.
    3. Sekhar, C.S.C., 2012. "Agricultural market integration in India: An analysis of select commodities," Food Policy, Elsevier, vol. 37(3), pages 309-322.
    4. Reardon, Thomas & Minten, Bart, 2011. "The quiet revolution in India's food supply chains:," IFPRI discussion papers 1115, International Food Policy Research Institute (IFPRI).
    5. Khanal, Aditya & Mishra, Ashok, 2016. "Income Risk, Habit Formation, and Precautionary Savings: The Case of Rural Households," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235597, Agricultural and Applied Economics Association.
    6. Bart Minten & Seneshaw Tamru & Ermias Engida & Tadesse Kuma, 2016. "Feeding Africa's Cities: The Case of the Supply Chain of Teff to Addis Ababa," Economic Development and Cultural Change, University of Chicago Press, vol. 64(2), pages 265-297.


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