India - Reforming Farm Support Policies for Grains

The objective of this study is to analyze some of the recent reforms proposed in the operation of government buffer stocks and provision of price support to wheat and rice farmers in India. Based on the Indian grain market scenario and the recent policy initiatives, this study estimates the potential impacts of reforms in India’s farm support policies on producers, consumers and traders in various regions of the country. The results are based on a multi commodity partial equilibrium simulation model of regional supplies and demands of grains by different economic classes. In particular, the study focuses on the decentralization of procurement of grains by the individual states where the latter are free to fix their minimum support prices for wheat and rice and the purchase of grain for the public distribution system (PDS) is from the open market. [PP-052] URL: [http://www.igidr.ac.in/pdf/publication/PP-052.pdf]