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Climate change in India: how to protect farmers?

Catherine Benjamin and Ewen Gallic
Université de Rennes I, Working Paper, September 2017
The effects of climate change on Indian agriculture under different alternative climate scenarios are empirically studied. This article uses the Ricardian approach that links net revenues per acre as a function of climate, farm and households’ characteristics. We estimate the net revenues per acre function using cross-sectional data and quantile regression. Empirical results show that farms with higher net revenues per acre look to be more affected by climate variables in magnitude. Farms with lower net revenues per acre tend to benefit more from crops mixing than farms
with high income per acre. In a second step, we implement two climate scenarios which differ according to the assumptions on changes on average temperature and total rainfall. Farms with low net revenues per acre experience losses less important in magnitude but larger in percent change than farms with high net revenues per acre. At the district level, results show more heterogeneity. Under both scenarios, districts in the North of India tend to experience a decrease in net revenues per acre while an opposed effect is found for districts in the South of the country.

Study on Implementation of Kisan Credit Card Scheme

Gyanendra Mani

Department of Economic Analysis and Research (DEAR), NABARD, Occasional Paper – 64, December 2016
Kisan Credit Card (KCC) is one of the many innovative banking products designed by NABARD with an objective to enable farmers to meet their credit requirements,preferably production credit, from financial institutions in a timely and hassle-free manner. The KCC scheme which was introduced in 1998, has gone through several changes since then and now incorporates many new features over & above the financing of crop production requirement, viz., consumption expenditure, maintenance of farm assets, term loan for agriculture & allied activities, coverage of KCC holders under Personal Accident Insurance Scheme (PAIS) and very recently the coverage of KCC holders under Atal Pension Yojna, etc. Today KCC is considered to be one of the most convenient banking products for the farmers.
     The present study aimed at finding out as to whether the present features of Kisan Credit Card Scheme are serving its intended purpose or not. The report has come out with many interesting findings and concludes that the implementation of KCC scheme has benefitted the farmers to a great extent and the farmers are able to generate profit, albeit in varying quantities. The study has also highlighted some concerns relating to the implementation of the scheme in light of the revised guidelines but these do not seem to be affecting the prospects of farmers getting the KCC loans from the bank and making the best use of it for crop cultivation. The study has also indicated that Interest Subvention as well as incentives for prompt repayment have positive impacts on the agricultural income of farmers covered under KCC scheme.
Courtesy  : NABARD

Pulses for nutrition in India: Changing patterns from farm to fork

Roy, Devesh; Joshi, Pramod Kumar and Chandra, Raj

International Food Policy Research Institute (IFPRI), 2017

What will it take for India, with a burgeoning population of well over a billion, to meet its food needs in the coming years? If the country is to speed progress in reducing hunger, malnutrition, and food insecurity, it must first revisit its food policy framework and level the playing field for nongrain crops. In Pulses for Nutrition in India: Changing Patterns from Farm to Fork, leading researchers consider the role that pulses can play in improving food security and nutrition as well as the changes necessary in production practices to accomplish these goals.

URL : http://ebrary.ifpri.org/cdm/singleitem/collection/p15738coll2/id/131533/rec/5

Courtesy : IFPRI E-BRARY


Technical Efficiency of Agricultural Production in India: Evidence from REDS Survey

Kailash Chandra Pradhan and Shrabani Mukherjee

MIDS WP 161, 2017


The study aims to estimate the technical efficiency of agricultural production in India using production frontier model for both cross section and panel data for the years 1999 and 2007. Given the persistent problem of under utilization of capacity in Indian farm sector still there is a serious need to identify the determining factors for technical efficiency for agricultural production in order to accelerate sustainable productivity and technological improvement. Farmers’ age and education level, household size, household‟s management in production, proportion of irrigated area covered by canals, availability of wells, yielding variety of lands, services provided by the government, agricultural expenditure by local government are the factors which significantly contribute to efficiency in resource utilisation. Traditional method of farming or learning by doing is preferred to adoption of new technologies which creates technological lock-in.

Structural Transformation in the North-eastern Region of India: Charting Out an Agriculture-based Development Policy


Agrarian South: Journal of Political Economy, Volume 6, Issue 3, December 2017

Economic development is associated with a process of structural transformation that entails a falling share of agriculture in terms of both output and employment. However, at least in the initial phases, the share of agricultural gross domestic product (GDP) as a proportion of total GDP tends to decline much faster than the share of agricultural employment in total employment. Consequently, the difference between these two shares, termed as the GAP in development literature, increases during the initial phase of economic development, whereby the agricultural sector continues to employ the majority of labour force but contributes less and less output to total GDP. This creates a structural imbalance in the economy, resulting in low agricultural productivity, high-income inequality and consequent political instability. In this essay, we intend to study this process of structural transformation in the North-eastern (NE) states of India. Within the paradigm of agriculture-led development, pioneered by John Mellor, the essay attempts to chart out a development path for the NE region centred on agriculture and agricultural productivity. We derive specific policy parameters that would go a long way in correcting the structural imbalances and the resulting economic inequality and political instability by reducing the ‘GAP’ and by augmenting agricultural productivity.

URL: http://journals.sagepub.com/toc/agsa/6/3

Courtesy: Sage

The impact of FDI in land in agriculture in developing countries on host country food security

Grazia D. Santangelo

Journal of World BusinessVolume 53, Issue 1January 2018

We investigate the influence of FDI in land in agriculture in developing countries, a phenomenon also known as land grabbing, on host country food security, and suggest a differential impact depending on the investor’s country of origin. FDI in land by developed-country investors positively influence food security by expanding land used for crop production because of home institutional pressure for human rights respect and responsible farmland conduct, in addition to positive spillovers. Instead, FDI in land by developing-country investors negatively influence food security by decreasing cropland due to home institutional pressure to align to national interests and government policy objectives, in addition to negative spillovers.

URL: https://www.sciencedirect.com/science/journal/10909516

Courtesy: Sciencedirect

Agricultural biodiversity and farm level technical efficiency: An empirical investigation

Muditha KarunarathnaClevo Wilson

Journal of Forest EconomicsVolume 29, Part ADecember 2017

Land degradation with deforestation and loss of biodiversity has been considered one of the most serious environmental problems for developing countries. The lower level of agricultural productivity resulting in the inability to obtain a sufficient level of production in agriculture leads rural communities to exert pressure on forest resources while damaging the ecological services provided by them. Promotion of economic efficiency as well as achieving environmentally sustainable farming practices can help maintain a sustainable agricultural sector while reducing land degradation and pressure on forests in rural communities. In this context this study investigates the relationships between different indicators of agricultural biodiversity (crop diversity, livestock diversity and agro-diversity) and farm level technical efficiency (TE). A survey conducted covering 723 farms in Sri Lanka is used for the analysis. The results show that crop diversity, livestock diversity and agro diversity are positively related with farm level TE. Hence, it is clear that maintaining more diverse farming systems is crucial to reducing farm level inefficiency and thereby improving the welfare of rural households while reducing the pressure on extensive agricultural practices which has increased global deforestation. Such diversity is especially important for subsistence agricultural practices which are still widespread in most Asian countries.

URL: https://www.sciencedirect.com/journal/journal-of-forest-economics/vol/29/part/PA

Courtesy: Sciencedirect