Procurement Policy and Moving Restriction in Indian Foodgrain Market

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  • インド穀物市場における州間移動自由化と政府買い上げ制度
  • インド穀物市場における州間移動自由化と政府買い上げ制度--Dantwala-Mellor命題を中心に
  • インド コクモツ シジョウ ニ オケル シュウ カン イドウ ジユウカ ト セイフ カイアゲ セイド Dantwala Mellor メイダイ オ チュウシン ニ
  • Dantwala-Mellor Conjecture under Economic Liberalization
  • Dantwala-Mellor命題を中心に

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<p>　The foodgrain market in India has been under multiplex government intervention. This paper discusses three kinds of intervention: procurement, public distribution system (PDS), and inter-state moving restrictions. Frequently, some types of intervention have been evaluated positively. These evaluations are: (1) PDS gives poor people easier access to food; and (2) procurement has a positive effect on production. Especially, the second effect is know as the 'Dantwala-Mellor conjecture.' This conjecture means that procuring a part of production causes an increase in open market price, and may result in improvement of the producers' welfare. <br>　Under 'The New Economic Policy' since 1991, agricultural liberalization has been a hot issue. It includes the reduction of agricultural subsidies and the relief of various regulations. <br>　The essential liberalization of moving restrictions is requested under globalization. In contrast, because of the need to care for poor people, the package of procurement-PDS prograrm will be maintained. However, procurement is imposed mainly upon agricultural developing regions. As a result, procurement policy is connected with the intervention of moving restrictions. In the present paper, the effects of the liberalization of moving restrictions on welfare are analyzed based on the Dantwala-Mellor conjeture.The main conclusions are: <br>　(1) 　The Dantwala-Mellor effect on production is less under the liberalization of moving restrictions. <br>　(2) 　The liberalization of moving restrictions increases food subsidies. <br>　Under the present situation, because the reduction of subsides is focused, this partial liberalization has some difficulties. However, liberalization with procurement and PDS will harm the welfare of poor people. India's agriculture face a dilemma under economic liberalization. <br>　The effects of export liberalization are also analyzed under the same framework.</p>

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