Comments on: Agricultural country - Answers http://www.yazadjal.com/2004/01/29/agricultural-country-answers/ Mon, 13 Oct 2008 06:33:20 +0000 http://wordpress.org/?v=2.0.1 by: Sk http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-579 Tue, 30 Nov 1999 00:00:00 +0000 http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-579 Ravi, one point about the problem of crashing prices (typically known as big country problem) is that it happens because we sell as a country. The govt accumulates the grain from the farmers and sell it. The information about the intention to sell is then easily available and hence prices crash. But if farmers were free to enter private contracts with buyers abroad, nobody could guess if farmer A intented to sell or not and more importantly at what price. This would ensure our farmers getting the best price in the international market. Once again, the best solution is "leave the kids alone" Ravi, one point about the problem of crashing prices (typically known as big country problem) is that it happens because we sell as a country. The govt accumulates the grain from the farmers and sell it. The information about the intention to sell is then easily available and hence prices crash. But if farmers were free to enter private contracts with buyers abroad, nobody could guess if farmer A intented to sell or not and more importantly at what price. This would ensure our farmers getting the best price in the international market. Once again, the best solution is “leave the kids alone”

]]> by: Nitin http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-580 Tue, 30 Nov 1999 00:00:00 +0000 http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-580 Exports, Yes. But before we speak of 'international' exports lets just consider domestic markets. The lack of transport and communications infrastructure makes India itself an archipelago of small markets. So it is essential to make India one common market first. International export markets for agro-foods are highly competitive. But rural India can surely compete in these markets. Again you need good roads, efficient and accessible sea- and airports. There are insufficient number of international transport hubs for most of India's farmers to even smell the export dollars. Unlike software and services, agricultural exports cannot happen without government's committment to infrastructure development. (And shall I say jettisoning of the socialist baggage) Exports, Yes.

But before we speak of ‘international’ exports lets just consider domestic markets. The lack of transport and communications infrastructure makes India itself an archipelago of small markets. So it is essential to make India one common market first.

International export markets for agro-foods are highly competitive. But rural India can surely compete in these markets. Again you need good roads, efficient and accessible sea- and airports. There are insufficient number of international transport hubs for most of India’s farmers to even smell the export dollars.

Unlike software and services, agricultural exports cannot happen without government’s committment to infrastructure development. (And shall I say jettisoning of the socialist baggage)

]]> by: sauvik http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-581 Tue, 30 Nov 1999 00:00:00 +0000 http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-581 what of cash crops. here i am in malnad: pepper, areca, vanilla, coffee, tea, what have you? what of cash crops. here i am in malnad: pepper, areca, vanilla, coffee, tea, what have you?

]]> by: Prashant P Kothari http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-582 Tue, 30 Nov 1999 00:00:00 +0000 http://www.yazadjal.com/2004/01/29/agricultural-country-answers/#comment-582 My guess 1) Food is income-inelastic at the higher income levels 2) Only a small percentage of Indians have reached such high income levels Ergo, as incomes within India rise, there's lots of scope for increased spending on food products -- cash crops/ fruits/ vegetables/ value-added stuff. 3) I also agree that exports of agricultural products (in whatever form) are an absolute must for India eg, Tasty Bite is just one small example. India is globally competitive in sugar, I think - but because of the governments (India and overseas), we don't exprot much. My guess

1) Food is income-inelastic at the higher income levels
2) Only a small percentage of Indians have reached such high income levels

Ergo, as incomes within India rise, there’s lots of scope for increased spending on food products — cash crops/ fruits/ vegetables/ value-added stuff.

3) I also agree that exports of agricultural products (in whatever form) are an absolute must for India eg, Tasty Bite is just one small example. India is globally competitive in sugar, I think - but because of the governments (India and overseas), we don’t exprot much.

]]>