TitleWould Indian farmers benefit from liberalization of world cotton and sugar markets?
Publication TypeJournal Article
Year of Publication2008
AuthorsMittal, S, Reimer, J
Pagination301 - 312
Date Published2008
ISBN Number1574-0862
KeywordsCotton, F1, India, OECD, Q1, Sugar, Trade liberalization

Rich-country support programs for cotton and sugar producers are frequently claimed to be detrimental for developing-country farmers. This study investigates whether a reduction in protectionist policies for Organization for Economic Cooperation and Development cotton and sugar producers would have a measurable effect on the welfare of Indian farmers. The fact that these sectors are intensively regulated within India might suggest that any such effect will be small. However, this study shows econometrically that prices in Indian rural markets closely follow world prices, and that Indian farmers are flexible in the medium to long run in changing production according to price signals from these markets. Depending on the crop and the nature of liberalization, producer surplus increases from 4.2% to 22.3% in the long run.

Short TitleAgricultural Economics