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

Articles by D M NachaneSubscribe to D M Nachane

Coastal Shipping Destination Unknown

Coastal Shipping: Destination Unknown? Trends in Coastal Shipping The trends in coastal shipping can be judged from Tables 1 and 2. Table 1 shows the total cargo (dry as well as wet) which coastal ships have been transporting over the period, 1951-1978. As is evident from the Table, total dry tar go carried has dropped off substantially in the last decade, with general cargo declining at the steepest rate and becoming virtually insignificant. Coal and salt remain the two basic items, accounting for the bulk of coastal traffic (So per cent), even though the cargo offered in respect of these two commodities has been continuously declining. The wet cargo carried has been maintaining a more or less satisfactory trend.

Explaining Price Behaviour

THIS book is a revised version of a PhD thesis submitted by the author to the London School of Economics in 1970 and is an attempt to identify major influence affecting prices, since the inception of planning in India. At the outset it must be mentioned that the author deserves praise for attempting to tackle an extremely complex problem. He has taken considerable pains to collect a large volume of data, has made a deep study of the market and other institutional forces operating in the Indian economy, and the econometric tools that he employs are well-chiselled. Unlike many econometricians, he is fully aware of the various limitations of his model and constantly draws attention to them. Nevertheless the work can be faulted on several details, and the reviewer has serious misgivings about certain aspects of the model, AGRICULTURAL SECTOR The general price level P is sought to be explained in terms of three major sectoral price indices (i) Pf wholesale price index of cereals, (ii) Pf, wholesale price index of manufactures and (iii) Pm, wholesale index of industrial raw materials. Since data on many items of food products was not easily available for the early years of the sample, the author chooses to work in terms of the price index of cereals alone. Using the prices of manufactures as a deflator the author proposes a multiple regression model to explain the relative of cereals by treating the cereals market as one in which a market-clearing price is established by the forces of demand and supply. To take account of the population variable, per capita magnitudes are used. The demand function of cereals is assumed to be of the form per cent on non-agricultural commodities. For farmers owning between 5 to 10 acres the figures were 52 per cent on agricultural commodities and 48 per cent on non-agricultural commodities. (This class might probably represent the model class for cereal cultivators.) It is only large farmers owning more than 30 acres for whom the proportion of income spent on manufactures was substantially high (about 65 per cent). (The reference year for the study is 1964-65.) These facts cast considerable doubt on the suitability of the price index f manufactures as a deflator, the general price index or alternatively the cost-of-living index might have been more appropriate. Turning now to a more serious anomaly, an examination of equations (1) and (2) above reveals that the consumption of cereals by a substantial proportion of the agricultural population, which is engaged in the production of non-cereals is unaccounted for. The observation by M L Dantvala (Indian Economic Journal, Oct-Dec 1970), made in a slightly different context, is very relevant here. According to him, it is not just urbanites but many of the rural population who are dependent on the market for a significant share of their food requirements. The following Table compiled by C V Achuthan shows the proportion of income generated in the non-cereals sector as a percentage of total agricultural income to he around 40 per cent.


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