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

Ashutosh Kumar TripathiSubscribe to Ashutosh Kumar Tripathi

Decomposing Variability in Agricultural Prices

Has government intervention in India's agriculture in the post-World Trade Organisation period helped in lowering the variability in domestic prices by not allowing the full transmission of international price signals? Examining this question, this paper makes an attempt to decompose changes in the domestic prices of select agricultural commodities by using a decomposition model. This allows separating the factors responsible for changes in domestic prices and quantifying their effects. The key variables in the model are trade prices, the exchange rate, and agricultural trade policies.
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