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Bumper crops, producer incentives and persistent poverty

Author

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  • Dorosh, Paul A.
  • Shahabuddin, Quazi
  • Aziz, M. Abdul
  • Farid, Naser

Abstract

Food aid has played a useful role in Government of Bangladesh efforts to increase food security in the last three decades, adding to foodgrain availability, supplying wheat for targeted distribution to poor households, and helping to finance development projects and programs. However, sustained increases in domestic production of both rice and wheat have increased the likelihood of disincentive effects arising from continued large inflows of food aid. The analysis shows that if good rice harvests continue so that real rice prices remain at their levels of 2000, and if international wheat prices return to their average 1995-99 levels, then public wheat distribution may need to be cut to levels below the current amount of food aid received (650 thousand tons in 2000/2001) to avoid reducing domestic prices below import parity. However, resources will continue to be required for programs that increase access to food by the poor, contribute to increased utilization of food and result in improved nutritional outcomes, even if the need for food aid to increase availability of foodgrains diminishes.

Suggested Citation

  • 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).
  • Handle: RePEc:fpr:mssddp:43
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    References listed on IDEAS

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    1. Coate, Stephen, 1989. "Cash versus direct food relief," Journal of Development Economics, Elsevier, vol. 30(2), pages 199-224, April.
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    Citations

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    Cited by:

    1. Gulati, Ashok & Narayanan, Sudha, 2002. "Rice trade liberalization and poverty," MTID discussion papers 51, International Food Policy Research Institute (IFPRI).
    2. del Ninno, Carlo & Dorosh, Paul A., 2002. "In-kind transfers and household food consumption," FCND briefs 134, International Food Policy Research Institute (IFPRI).
    3. Christopher B. Barrett, 2006. "Food Aid’s Intended and Unintended Consequences," Working Papers 06-05, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    4. Rashid, Shahidur & Sharma, Manohar & Zeller, Manfred, 2002. "Micro-lending for small farmers in Bangladesh," MTID discussion papers 45, International Food Policy Research Institute (IFPRI).
    5. Dorosh, Paul A. & Shahabuddin, Quazi, 2002. "Rice price stabilization in Bangladesh," MSSD discussion papers 46, International Food Policy Research Institute (IFPRI).
    6. Mohajan, Haradhan, 2013. "Food and nutrition of Bangladesh," MPRA Paper 53527, University Library of Munich, Germany, revised 11 Nov 2013.
    7. Abdulai, Awudu & Barrett, Christopher B. & Hazell, Peter, 2004. "Food aid for market development in Sub-Saharan Africa," DSGD discussion papers 5, International Food Policy Research Institute (IFPRI).
    8. Shahabuddin, Quazi & Dorosh, Paul A., 2002. "Comparative advantage in Bangladesh crop production," MSSD discussion papers 47, International Food Policy Research Institute (IFPRI).
    9. Mohajan, Haradhan, 2013. "Food, Agriculture and Economic Situation of Bangladesh," MPRA Paper 54240, University Library of Munich, Germany, revised 18 Aug 2013.
    10. Nicholas Minot & Lisa Daniels, 2005. "Impact of global cotton markets on rural poverty in Benin," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 453-466, November.
    11. Shahidur Rashid, 2004. "Spatial Integration of Maize Markets in Post-liberalised Uganda," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 13(1), pages 102-133, March.
    12. Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MTID discussion papers 52, International Food Policy Research Institute (IFPRI).
      • Delgado, Christopher L. & Rosegrant, Mark W. & Wada, Nikolas & Meijer, Siet & Ahmed, Mahfuzuddin, 2002. "Fish as food," MSSD discussion papers 52, International Food Policy Research Institute (IFPRI).

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