Impact of India’s National Food Security Act on domestic and international rice markets

Policy making in food security is at a crossroads in India, particularly for the rice crop. Whereas India has emerged as a leading rice exporter over the last two years, the government has also introduced a large food subsidy program called the National Food Security Act. The program requires that 3...

Full description

Bibliographic Details
Main Authors: Debnath, Deepayan, Babu, Suresh Chandra, Ghosh, Parijat, Helmer, Michael
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2017
Subjects:
Online Access:https://hdl.handle.net/10568/147802
_version_ 1855529351547715584
author Debnath, Deepayan
Babu, Suresh Chandra
Ghosh, Parijat
Helmer, Michael
author_browse Babu, Suresh Chandra
Debnath, Deepayan
Ghosh, Parijat
Helmer, Michael
author_facet Debnath, Deepayan
Babu, Suresh Chandra
Ghosh, Parijat
Helmer, Michael
author_sort Debnath, Deepayan
collection Repository of Agricultural Research Outputs (CGSpace)
description Policy making in food security is at a crossroads in India, particularly for the rice crop. Whereas India has emerged as a leading rice exporter over the last two years, the government has also introduced a large food subsidy program called the National Food Security Act. The program requires that 33.6 million metric tons of rice per year be distributed to the marginalized rural and urban populations of the country. In this study, we analyze the long-term impact of India’s Food Security Act on its domestic rice market and the international market for rice. We specify and apply a structural demand-and-supply model to India’s rice market and link it with the world rice market, as part of a broad partial equilibrium modeling system of international agriculture commodity markets. We specifically focus on three different scenarios—subsidy as a price effect, subsidy as an inelastic income effect, and subsidy as an elastic income effect—under the broader framework of the National Food Security Act. We find that at the end of the projection period (the 2024/2025 crop year), as a result of the rice subsidy program, the consumption of rice increases significantly by 6,831 thousand metric ton (MT) in the case of the price effect while the inelastic income effect has little impact on production, consumption which increase by 265 thousand MT and 269 thousand MT, respectively and no impact on rice export of India.
format Artículo preliminar
id CGSpace147802
institution CGIAR Consortium
language Inglés
publishDate 2017
publishDateRange 2017
publishDateSort 2017
publisher International Food Policy Research Institute
publisherStr International Food Policy Research Institute
record_format dspace
spelling CGSpace1478022025-11-06T06:38:43Z Impact of India’s National Food Security Act on domestic and international rice markets Debnath, Deepayan Babu, Suresh Chandra Ghosh, Parijat Helmer, Michael income models forecasting food policies agricultural policies rice elasticities markets food security subsidies prices employment elasticities Policy making in food security is at a crossroads in India, particularly for the rice crop. Whereas India has emerged as a leading rice exporter over the last two years, the government has also introduced a large food subsidy program called the National Food Security Act. The program requires that 33.6 million metric tons of rice per year be distributed to the marginalized rural and urban populations of the country. In this study, we analyze the long-term impact of India’s Food Security Act on its domestic rice market and the international market for rice. We specify and apply a structural demand-and-supply model to India’s rice market and link it with the world rice market, as part of a broad partial equilibrium modeling system of international agriculture commodity markets. We specifically focus on three different scenarios—subsidy as a price effect, subsidy as an inelastic income effect, and subsidy as an elastic income effect—under the broader framework of the National Food Security Act. We find that at the end of the projection period (the 2024/2025 crop year), as a result of the rice subsidy program, the consumption of rice increases significantly by 6,831 thousand metric ton (MT) in the case of the price effect while the inelastic income effect has little impact on production, consumption which increase by 265 thousand MT and 269 thousand MT, respectively and no impact on rice export of India. 2017 2024-06-21T09:23:20Z 2024-06-21T09:23:20Z Working Paper https://hdl.handle.net/10568/147802 en https://hdl.handle.net/10568/146169 https://hdl.handle.net/10568/147676 Open Access application/pdf International Food Policy Research Institute Debnath, Deepayan; Babu, Suresh Chandra; Ghosh, Parijat; and Helmer, Michael. 2017. Impact of India’s National Food Security Act on domestic and international rice markets. IFPRI Discussion Paper 1635. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/147802
spellingShingle income
models
forecasting
food policies
agricultural policies
rice
elasticities
markets
food security
subsidies
prices
employment elasticities
Debnath, Deepayan
Babu, Suresh Chandra
Ghosh, Parijat
Helmer, Michael
Impact of India’s National Food Security Act on domestic and international rice markets
title Impact of India’s National Food Security Act on domestic and international rice markets
title_full Impact of India’s National Food Security Act on domestic and international rice markets
title_fullStr Impact of India’s National Food Security Act on domestic and international rice markets
title_full_unstemmed Impact of India’s National Food Security Act on domestic and international rice markets
title_short Impact of India’s National Food Security Act on domestic and international rice markets
title_sort impact of india s national food security act on domestic and international rice markets
topic income
models
forecasting
food policies
agricultural policies
rice
elasticities
markets
food security
subsidies
prices
employment elasticities
url https://hdl.handle.net/10568/147802
work_keys_str_mv AT debnathdeepayan impactofindiasnationalfoodsecurityactondomesticandinternationalricemarkets
AT babusureshchandra impactofindiasnationalfoodsecurityactondomesticandinternationalricemarkets
AT ghoshparijat impactofindiasnationalfoodsecurityactondomesticandinternationalricemarkets
AT helmermichael impactofindiasnationalfoodsecurityactondomesticandinternationalricemarkets