COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India

the April–June 2020 quarter, the nation's agricultural sector, somewhat surprisingly, seems to have done remarkably well. This paper examines whether the public transfer program Pradhan Mantri Garib Kalyan Yojana (PMGKY), announced immediately after the lockdown, benefited farmers in dealing with th...

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Autores principales: Varshney, Deepak, Kumar, Anjani, Mishra, Ashok K., Rashid, Shahidur, Joshi, Pramod Kumar
Formato: Journal Article
Lenguaje:Inglés
Publicado: Agricultural and Applied Economics Association 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/142350
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author Varshney, Deepak
Kumar, Anjani
Mishra, Ashok K.
Rashid, Shahidur
Joshi, Pramod Kumar
author_browse Joshi, Pramod Kumar
Kumar, Anjani
Mishra, Ashok K.
Rashid, Shahidur
Varshney, Deepak
author_facet Varshney, Deepak
Kumar, Anjani
Mishra, Ashok K.
Rashid, Shahidur
Joshi, Pramod Kumar
author_sort Varshney, Deepak
collection Repository of Agricultural Research Outputs (CGSpace)
description the April–June 2020 quarter, the nation's agricultural sector, somewhat surprisingly, seems to have done remarkably well. This paper examines whether the public transfer program Pradhan Mantri Garib Kalyan Yojana (PMGKY), announced immediately after the lockdown, benefited farmers in dealing with the COVID shock. Overall, 95% of the smallholders received support from at least one of PMGKY's four components. Direct cash transfers had significantly more impact than in‐kind transfer schemes. The result shows that farmers receiving cash transfers under PM‐KISAN, one component of PMGKY, were more likely to invest in buying seeds. In contrast, farmers receiving cash transfers under PM‐UY, another piece of PMGKY, were more likely to invest in fertilizer and pesticides. Finally, smallholders who received benefits from all four components of PMGKY were more likely to invest in purchasing seeds, fertilizer, and pesticides. Findings suggest the fungibility of public cash transfers from the recent PMGKY scheme is significant in alleviating credit constraints and increasing future investments in modern inputs.
format Journal Article
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institution CGIAR Consortium
language Inglés
publishDate 2021
publishDateRange 2021
publishDateSort 2021
publisher Agricultural and Applied Economics Association
publisherStr Agricultural and Applied Economics Association
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spelling CGSpace1423502024-10-25T08:05:34Z COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India Varshney, Deepak Kumar, Anjani Mishra, Ashok K. Rashid, Shahidur Joshi, Pramod Kumar inputs policies covid-19 liquidity agricultural policies social protection agriculture smallholders cash transfers the April–June 2020 quarter, the nation's agricultural sector, somewhat surprisingly, seems to have done remarkably well. This paper examines whether the public transfer program Pradhan Mantri Garib Kalyan Yojana (PMGKY), announced immediately after the lockdown, benefited farmers in dealing with the COVID shock. Overall, 95% of the smallholders received support from at least one of PMGKY's four components. Direct cash transfers had significantly more impact than in‐kind transfer schemes. The result shows that farmers receiving cash transfers under PM‐KISAN, one component of PMGKY, were more likely to invest in buying seeds. In contrast, farmers receiving cash transfers under PM‐UY, another piece of PMGKY, were more likely to invest in fertilizer and pesticides. Finally, smallholders who received benefits from all four components of PMGKY were more likely to invest in purchasing seeds, fertilizer, and pesticides. Findings suggest the fungibility of public cash transfers from the recent PMGKY scheme is significant in alleviating credit constraints and increasing future investments in modern inputs. 2021-03-01 2024-05-22T12:10:21Z 2024-05-22T12:10:21Z Journal Article https://hdl.handle.net/10568/142350 en https://doi.org/10.2499/p15738coll2.135058 Open Access Agricultural and Applied Economics Association Varshney, Deepak; Kumar, Anjani; Mishra, Ashok K.; Rashid, Shahidur; and Joshi, Pramod K. 2021. COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India. Applied Economic Perspectives and 43(1): 248-269. https://doi.org/10.1002/aepp.13144
spellingShingle inputs
policies
covid-19
liquidity
agricultural policies
social protection
agriculture
smallholders
cash transfers
Varshney, Deepak
Kumar, Anjani
Mishra, Ashok K.
Rashid, Shahidur
Joshi, Pramod Kumar
COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India
title COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India
title_full COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India
title_fullStr COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India
title_full_unstemmed COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India
title_short COVID‐19, government transfer payments, and investment decisions in farming business: Evidence from northern India
title_sort covid 19 government transfer payments and investment decisions in farming business evidence from northern india
topic inputs
policies
covid-19
liquidity
agricultural policies
social protection
agriculture
smallholders
cash transfers
url https://hdl.handle.net/10568/142350
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AT mishraashokk covid19governmenttransferpaymentsandinvestmentdecisionsinfarmingbusinessevidencefromnorthernindia
AT rashidshahidur covid19governmenttransferpaymentsandinvestmentdecisionsinfarmingbusinessevidencefromnorthernindia
AT joshipramodkumar covid19governmenttransferpaymentsandinvestmentdecisionsinfarmingbusinessevidencefromnorthernindia