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.
EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.
Comments
EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.