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The Role of Policy and Industry Structure in India's Oilseed Markets


  • Persaud, Suresh Chand
  • Landes, Maurice R.


High tariff and nontariff protection of the Indian oilseed sector imposes costs on consumers, supports an inefficient processing industry, and has led to negligible gains in oilseed output. Model-based simulations indicate that higher levels of protection would increase the burden on consumers, but do little to meet key policy goals of supporting producers and reducing import dependence. A shift to direct support of oilseed producer prices would increase output, but may be complex to implement and subject to WTO discipline. Liberalization of oilseed imports, by permitting large gains in processing efficiency, could generate a stream of benefits that would allow producers, consumers, and processors to be better off, and also improve the trade balance.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uersrr:7218

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    References listed on IDEAS

    1. Dev, S. Mahendra & Ravi, C. & Viswanathan, Brinda & Gulati, Ashok & Ramachander, Sangamitra, 2004. "Economic liberalisation targeted programmes and household food security," MTID discussion papers 68, International Food Policy Research Institute (IFPRI).
    2. Sudhir Chaudhary, 1997. "Government Intervention and Trends in the Indian Oilseeds Sector: An Analysis of Alternative Policy Scenarios," Center for Agricultural and Rural Development (CARD) Publications 97-wp179, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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    Cited by:

    1. Hawkes, Corinna & Friel, Sharon & Lobstein, Tim & Lang, Tim, 2012. "Linking agricultural policies with obesity and noncommunicable diseases: A new perspective for a globalising world," Food Policy, Elsevier, vol. 37(3), pages 343-353.
    2. 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.
    3. KM Shivakumar & S.Kombairaju & M.Chandrasekaran, "undated". "Trade Policy Analysis of Edible Oil Imports of India under CGE framework," EcoMod2007 23900083, EcoMod.
    4. Privitera, Donatella & Rognetta, Bernardo, 2008. "Caratteristiche e mutamenti del commercio agro-alimentare: un confronto fra Italia ed India," 2008 XVI Convegno Annuale SIEA - Le Dinamiche del Commercio Agro-alimentare Tra Commodities e Prodotti Differenziati, 5-6 Giugno 2008, Trieste 48177, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA).
    5. Pursell, Garry & Gulati, Ashok & Gupta, Kanupriya, 2007. "Distortions to Agricultural Incentives in India," Agricultural Distortions Working Paper 48483, World Bank.


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