ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Employment, Foreign Exchange and Environment-Implications for Cropping Pattern

Unemployment, scarcity of foreign exchange and stress on environment are the most serious problems which stalk the economy today. By implication, a desirable cropping pattern would be one whichfyvqurs crops which are labour-intensive and have greater second-round employment effects. Simultaneously, it should favour crops which are either efficient import substitutes or exportables to save (earn) foreign exchange in balance. Further, given water as the binding constraint, the cropping pattern should attempt to maximise returns to this input and favour crops that are ecologically sustainable. This paper seeks to delineate broad contours of such a cropping pattern.

Prices, Procurement and Production-An Analysis of Wheat and Rice

An Analysis of Wheat and Rice Ashok Gulati Pradeep K Sharma There has been an unusual hike in the procurement prices of wheat and paddy in 1989-90. This raises issues such as: how are these prices determined? What is their impact on open market prices? How do they affect the volume of procurement and output by entering into the incentive structure of farmers? This paper explores these issues in an empirical framework. The results indicate that procurement prices are largely influenced by movements in cost of production and lagged open market prices with occasional bonanzas emanating from non-economic considerations; procurement prices have a decisive influence on current market price formation with other factors like stocks with government and zoning playing only marginal roles; the volume of procurement is significantly affected by level of output and difference between procurement and open market prices weakly supported by administrative measures; the supply of wheat and rice is influenced by their open market prices, suitably deflated, and non-price variables like irrigation. The elasticity with respect to shifter variables is much greater than price elasticity. Results for wheat are more robust than for rice. In all cases state-level results reveal greater diversity. The study contemplates a supportive role for prices which becomes critical when non-price factors are in place.

Structure of Effective Incentives in Indian Agriculture-Some Policy Implications

Indian Agriculture Some Policy Implications Ashok Gulati This paper seeks to estimate revailing effective incentives for cultivators of different crops in various regions during the 1980s. Section I of the paper spells out the methodology adopted and Section II presents estimates of effective incentives for specific crops and regions. The final section draws some policy implications of these results and lists the issues that need further study.

Oilseeds Is Higher Price the Answer

Oilseeds: Is Higher Price the Answer? Ashok Gulati Edible Oilseeds: Growth, Area Responses and Prospects in India by K N Ninan; Oxford and IBH Publishing Co, New Delhi, 1989; pp xvi +

Food Subsidies In Search of Cost-Effectiveness

Food Subsidies: In Search of Cost-Effectiveness Ashok Gulati Food Subsidies in Developing Countries: Costs, Benefits and Policy Options edited by Per Pinstrup-Andersen; published for the International Food Policy Research Institute, USA, by the Johns Hopkins University Press, Baltimore and London, 1988; pp xvii + 374.

Input Subsidies in Indian Agriculture-A Statewise Analysis

A Statewise Analysis Ashok Gulati This is an attempt to estimate the quantum and distribution of input subsidies across states in Indian agriculture during 1980s. The dispersion pattern of input subsidies has implications for incentive structures prevailing in the agricultural sectors of different states as well as efficiency (and consequently comparative advantage) in production of agricultural commodities across regions and states. The attempt is to present some results which can he significant in evolving a rational/desirable cropping pattern in different agro-climatic zones based on the principle of comparative advantage. The study covers four major inputs of modern agriculture

Effective Incentives and Subsidies for Groundnut Cultivators in India

This paper quantifies region-specific effective incentives for groundnut during the 1980s by estimating the nominal protection coefficients (NPCs), effective protection coefficients (EPCs) and effective subsidy coefficients (ESCs), under importable and exportable hypotheses. The estimated results suggest that groundnut cultivators in India have been net 'subsidised. Given short-term and long-term projections of world prices of groundnut (oil and meals), which are likely to remain depressed at around 1986 levels, it appears that degree of 'protection' will remain sufficiently high for Indian groundnut cultivators in the coming years. Even if one adjusts for premium on foreign exchange and one estimates 'adjusted ESCs, which would be very close to cost benefit indicators such as domestic resource cost (DRC), the situation is not likely to change. The new set of 'adjusted' ESCs, when viewed from comparative advantage point, would indicate that groundnut is neither an efficient import substitute nor an efficient exportable commodity. It would also suggest that investment programmes to expand production of groundnut would yield low economic rates of return.

Effective Incentives and Subsidies for Cotton Cultivators in India

Cotton Cultivators in India Ashok Gulati This paper attempts to quantify the degree of distortions in the trade pricing policies with regard to Indian seed-cotton (kapas) during the 1980s. The region and variety-specific incentive structure of cotton is estimated by adopting a standard methodology Four major varieties of cotton dominant in the regions of Maharashtra, Gujarat, Punjab and Andhra Pradesh are covered. Broadly the results do not support a policy of protection for cotton cultivators in India.

From Prosperity to Retrogression-Indian Cultivators during the 1970s

Indian Cultivators during the 1970s Dalip S Swamy Ashok Gulati The net income of the Indian farmer has been continuously falling since 1971. This is primarily accounted for by adverse price movements. There has been an erosion of price margin over cost. Paradoxically the faster growing non-agricultural sector is able to sustain a higher rate of price increase year after year. This deterioration in the inter-sectoral terms of trade has resulted in the immuniseration of farmers in India.


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