Market access, price policy and diversification in Indian agriculture

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dc.creatorNegi, Digvijay S.
dc.creatorBirthal, Pratap Singh
dc.creatorRoy, Devesh
dc.creatorHazrana, Jaweriah
dc.date2020-05-01
dc.date2024-05-22T12:15:35Z
dc.date2024-05-22T12:15:35Z
dc.date.accessioned2026-06-27T14:55:29Z
dc.descriptionThis paper provides empirical evidence of a causal relationship between the access to markets and the crop partial policies on the pattern of specialization or diversification in Indian agriculture. We uniquely combine highly spatially disaggregated data on cropping patterns, amenities, and market size at a granular level, and construct a measure of market access using indicators from both the supply and the demand side of trade. We employ the heteroscedasticity based two-stage Lewbel (2012) estimator to address the possible endogeneity of market access and also test for non-linearity between market access and crop diversification. Our results show that locations connected with bigger markets are more diversified into vegetables, and cash crops like oilseeds and cotton. However, the effect of market access moderates after a threshold level of diversification probably because of the non-market constraints. Nonetheless, the policy-induced distortions in agri-food markets, the nucleus of policies in the form of procurement of cereals mainly rice and wheat at the government-determined pre-announced minimum support prices, significantly attenuates the effect of market access on crop diversification.
dc.identifierhttps://hdl.handle.net/10568/143614
dc.identifier.urihttp://hdl.handle.net/123456789/89543
dc.languageen
dc.publisherIndira Gandhi Institute of Development Research
dc.rightsOpen Access
dc.sourceNegi, Digvijay S.; Birthal, Pratap S.; Roy, Devesh; and Hazrana, Jaweriah. 2020. Market access, price policy and diversification in Indian agriculture. IGIDR Working Paper WP-2020-009. http://www.igidr.ac.in/working-paper-market-access-price-policy-diversification-indian-agriculture/
dc.subjectsupply balance
dc.subjectpolicies
dc.subjectgrain crops
dc.subjectagriculture
dc.subjectoilseeds
dc.subjectmarket access
dc.subjecttrade
dc.subjectdiversification
dc.subjectpoverty
dc.subjectprices
dc.subjectrural areas
dc.titleMarket access, price policy and diversification in Indian agriculture
dc.typeWorking Paper

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Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)