Economic growth in India has not delivered benefits across the population, particularly in agriculture. Instead the importance of agriculture has been diminished, including in its capacity to contribute to food security and rural poverty alleviation. In part extensive regulation, both through central and state governments has hampered agricultural growth. Domestic regulation can have widespread implications, socially and economically. Interventions in commodity markets, such as through state trading enterprises limit competition. Social implications relating to market-access also impact widely, such as in limiting opportunities for poor farmers to venture into markets delivering price premiums. In the case of India the potential of poorly performing markets or limited access to impact on tens of millions of people is very high.
Regulation of domestic markets can also distort international trade, particularly where prices are not set by the market. Australia has substantial expertise and experience in implementing domestic market reforms, and in developing efficient agricultural commodity markets. The export focus of many of these markets also provides relevance for managing trade implications and ensuring compliance with various international trade agreements.
Social aspects of market reforms, together with trade implications and market deregulation for greater efficiency are under examination, to:
determine through review the main institutional and regulatory interventions in selected agricultural sectors,
analyse marketing system constraints in selected agricultural sectors and their impacts on prices, production, income, consumption, trade and efficiency through in-depth case studies,
identify, evaluate and quantify the impact of domestic market and international trade policy reform options on agricultural prices, production, income, consumption, trade and efficiency, and
develop and disseminate a set of policy recommendations for more efficient markets to key stakeholders.
Survey of relevant Indian literature and interviews with government and industry representatives and relevant analytical and international literature
Draft working paper and present at Implementation Workshop in Delhi
Obtain guidance from Advisory Committee about sectors for study and key policy issues
Field visits, interviews and literature surveys
Identification of main characteristics and incorporation into specific models
Utilise currently available data base and extend existing STE and CGE models
Draw on literature review and implementation workshop discussions and revise existing STE and CGE models
Conduct preliminary policy experiments with STE and CGE models
Use information obtained from case studies and revise and extend models, conduct policy experiments
Revise technical papers and prepare for publication
Review conclusions of STE, CGE and case study material and formulate policy recommendations
Finalise policy recommendations and preparation of non-technical material for public dissemination for wider circulation
Transfer of models and skills to analysts through training sessions in Delhi
Links:
[1] http://www.aciar.gov.au/country/India
[2] http://www.aciar.gov.au/programarea/Agricultural Development Policy