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

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Public Expenditure in Agriculture

Trends in public expenditure related to the agriculture sector in India are recategorised and analysed to understand the spatial and temporal trends in expenditure, the extent to which it has shifted across various subsectors, and assess if the sectors, prioritised and promoted, receive commensurate allocations.

Role of Intensive and Extensive Margins in India’s Agricultural Exports

Increasing exports has been at the centre of policymaking for ensuring India’s economic growth and development. An analysis of the relative contribution of intensive and extensive margins to growth in India’s agricultural exports from 2001–20 reveals that the intensification of the export of existing products to existing destinations dominated export growth, whereas the contribution of export diversification has remained subdued. Broadly, the results indicate that India’s exports along the extensive margin have not been fully exploited and that export diversification holds the key to higher export growth. There is a wide scope for expansion of India’s agricultural exports through the development of new product varieties and markets.

Skewed Food Policies, Distorted Inter-crop Parity, and Nutri-cereal Farmers

Farmer profitability, cost of food production, and associated issues of nutri-cereals are analysed by leveraging a large database spanning a 35-year period. The skewed food policies being followed in India are highlighted here.

Revisiting the Relationship between Public and Private Capital Formation in Indian Agriculture

Using the decennial All-India Debt and Investment Survey, this paper examines the spatial and temporal trends of private fixed capital expenditure among rural households. It also examines the impact of public investment and input subsidy on private agricultural investment. It notes that there has been a substantial increase in the spending fixed capital with significant interstate variations. An econometric analysis reveals significantly positive impact of public investment in agriculture and irrigation on private agricultural investment.

Crop Insurance and Rice Productivity

The factors affecting the demand for crop insurance are analysed and its impact on the yields of smallholder rice producers in eastern India is assessed. Using data from a large farm-level survey from eastern India, a positive and significant impact of crop insurance on rice yields is observed. The robustness of the findings are tested after controlling for other covariates and endogeneity, using propensity-score matching and endogenous switching regression models.

Does Public Procurement Benefit Paddy Farmers?

This paper investigates the impact of public procurement on paddy farmers in Bihar. Whether farmers’ access to public procurement agencies led to higher price realisation by them is examined here. The paper used a comprehensive telephonic survey of 1,976 farm households in eastern India (Bihar, eastern Uttar Pradesh, Jharkhand, Odisha, and West Bengal) and employed an endogenous switching regression model to estimate the impact of public procurement on farm harvest price of paddy. The findings reveal that farmers gain by selling to public agencies. However, they are unable to receive the minimum support price.

Determinants and Dynamics of Food Insecurity during COVID-19 in Rural Eastern India

Using comprehensive telephone survey data from 2,599 households, the paper estimates the status of food insecurity using the food insecurity experience scale in rural households in eastern India. The results indicate that households belonging to lower social strata with less land and fewer years of education are more likely to suffer from food insecurity.

 

Impact of National Lockdown on Rural Household’s Income

The unprecedented shutdown of economic activities led to a colossal loss of livelihoods. To understand the impact of this national lockdown on rural households’ income, the paper empirically examines the determinants of reduction in their income, and the effectiveness of government’s response in mitigating their economic hardships. The study is based on a comprehensive telephonic survey of 2,599 rural households from five eastern states—Bihar, eastern Uttar Pradesh, Jharkhand, Odisha, and West Bengal conducted during the lockdown period, June–July 2020. The econometric results highlight that (i) a number of socio-economic and demographic factors influenced income loss of rural households during the lockdown, (ii) the impact was relatively higher on the migrant labour, though it differed across the eastern states, and (iii) government cash and in-kind assistance under various social protection schemes were timely but requires expansion in both coverage and outreach.

 

How Did Agri-start-ups Fare during the COVID-19 Pandemic?

Although agricultural start-ups in India took a hit due to the COVID-19-induced lockdown, they have enormous potential in aiding economic recovery. A survey of 162 start-ups from 29 states, located in 98 cities, reveals that many start-ups have tailored their products, modified their technologies and invested in their long-term growth potential, even as they suffered from liquidity crunch, lack of investor funds and poor demand. The government should provide capital access, market access support and end-to-end solutions for innovation and marketing towards harnessing the power of these start-ups.

PM-KISAN and the Adoption of Modern Agricultural Technologies

The Pradhan Mantri Kisan Samman Nidhi scheme aims to provide income support to farmers for easing their liquidity needs to facilitate timely access to inputs. This study, based on 1,406 farmers of Uttar Pradesh, uses a binary choice model to examine the targeting accuracy and correlates of the spending pattern of farmers. Triple difference with matching estimators is used to identify the differential impact of the scheme on the Krishi Vigyan Kendra beneficiaries. Results show that the scheme reached one-third farmers in the first three months of its implementation, and has significantly helped those who are relatively more dependent on agriculture and have poor access to credit. Moreover, the scheme has significantly stimulated the Krishi Vigyan Kendra's impact on the adoption of modern cultivars.

Access to Credit in Eastern India

The impact of access to credit on the economic well-being of agricultural households in eastern India is empirically evaluated. Using a large, farm-level data set from eastern Indian states and a multinomial endogenous switching regression model, the findings reveal that access to credit increases economic well-being, and farmers availing credit from formal sources are better off than those availing credit from informal sources. Finally, access to credit affects recipients heterogeneously, implying that credit policies should be adaptable to different agricultural household groups.

What Drives Transitions in Milk Productivity?

The trend in milk productivity and its association with breed improvement, feeding and animal husbandry practices, and effi ciency in dairy farming at the household level are examined using the representative cost of cultivation surveys in Punjab. Although milk yield at the farm level is rising due to the increasing adoption of cross-bred cattle and changing composition of animal rations, evidence is found to support the argument to popularise cross-bred technology for realising a higher milk yield. However, the rising trend in milk yield coexists with declining effi ciency levels in milk production.

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