Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains

We extend the nominal rate of protection (NRP) methodology to a value chain framework. We develop our methodology for three types of value chains: a new value chain created by policy, a value chain in which a by‐product is created in the processing of a commodity, and a value chain in which processi...

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Autores principales: Tokgoz, Simla, Majeed, Fahd
Formato: Journal Article
Lenguaje:Inglés
Publicado: John Wiley & Sons 2019
Materias:
Acceso en línea:https://hdl.handle.net/10568/145409
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author Tokgoz, Simla
Majeed, Fahd
author_browse Majeed, Fahd
Tokgoz, Simla
author_facet Tokgoz, Simla
Majeed, Fahd
author_sort Tokgoz, Simla
collection Repository of Agricultural Research Outputs (CGSpace)
description We extend the nominal rate of protection (NRP) methodology to a value chain framework. We develop our methodology for three types of value chains: a new value chain created by policy, a value chain in which a by‐product is created in the processing of a commodity, and a value chain in which processing of a commodity generates new product(s). We consider two cases of value chains: when the commodity is tradable and when it is non‐tradable. The proposed indicator, value chain NRP, allows policy‐makers to see an aggregate measure of all policy impacts on all the commodities and products in the value chain, normalised at the farm level. We apply the methodology to selected value chains in India. Our results indicate that farmers are subsidised, but at different rates. Both sugarcane producers and sugar producers are protected, but sugar producers are protected at higher rates. Producers of downstream products such as ethanol and molasses are taxed, whereas the crushing industry is subsidised. We observe that there is increasing protection along the value chain from commodity to product for the oilseeds sector, whereas the picture is less clear for the sugarcane value chain.
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spelling CGSpace1454092025-02-24T06:47:26Z Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains Tokgoz, Simla Majeed, Fahd supply chains taxes agricultural policies oilseeds incentives subsidies sugar We extend the nominal rate of protection (NRP) methodology to a value chain framework. We develop our methodology for three types of value chains: a new value chain created by policy, a value chain in which a by‐product is created in the processing of a commodity, and a value chain in which processing of a commodity generates new product(s). We consider two cases of value chains: when the commodity is tradable and when it is non‐tradable. The proposed indicator, value chain NRP, allows policy‐makers to see an aggregate measure of all policy impacts on all the commodities and products in the value chain, normalised at the farm level. We apply the methodology to selected value chains in India. Our results indicate that farmers are subsidised, but at different rates. Both sugarcane producers and sugar producers are protected, but sugar producers are protected at higher rates. Producers of downstream products such as ethanol and molasses are taxed, whereas the crushing industry is subsidised. We observe that there is increasing protection along the value chain from commodity to product for the oilseeds sector, whereas the picture is less clear for the sugarcane value chain. 2019-06 2024-06-21T09:04:28Z 2024-06-21T09:04:28Z Journal Article https://hdl.handle.net/10568/145409 en http://purl.umn.edu/236087 https://doi.org/10.1111/rode.12664 Limited Access John Wiley & Sons Tokgoz, Simla; and Majeed, Fahd. 2019. Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains. Journal of Agricultural Economics 70 (2): 275-292. https://doi.org/10.1111/1477-9552.12305
spellingShingle supply chains
taxes
agricultural policies
oilseeds
incentives
subsidies
sugar
Tokgoz, Simla
Majeed, Fahd
Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains
title Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains
title_full Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains
title_fullStr Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains
title_full_unstemmed Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains
title_short Measuring distortions to agricultural incentives for value chain analysis: Evidence from Indian value chains
title_sort measuring distortions to agricultural incentives for value chain analysis evidence from indian value chains
topic supply chains
taxes
agricultural policies
oilseeds
incentives
subsidies
sugar
url https://hdl.handle.net/10568/145409
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AT majeedfahd measuringdistortionstoagriculturalincentivesforvaluechainanalysisevidencefromindianvaluechains