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Agricultural Policies in India

image of Agricultural Policies in India

This report assesses the performance of agricultural and food policy in India and calculates a set of policy indicators providing a comprehensive picture of agricultural support. These indicators, developed by the OECD, are already used regularly in the analysis of the agriculture and food sector in 51 OECD countries and emerging economies and are now available for India for the first time.

Government intervention in India is found to provide both negative and positive support to agriculture, with market and trade interventions often depressing prices, while subsidies to fertilisers, water, power and other inputs incentivise their use. This reveals the inherent difficulty in attempting to secure remunerative prices and higher incomes for farmers, while at the same time keeping food prices low for consumers. The report also points to policy-induced pressures on natural resources such as water and soil. Detailed recommendations are offered which, if implemented, have the potential to improve farmers' welfare, reduce environmental damage, alleviate some of the pressure on scarce resources, better prepare the sector for climate change, improve food and nutrition security for the poor, improve domestic market functioning and position India to participate more fully in agro-food global value chains.

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Trends and evaluation of agricultural policy in India

The chapter describes the evolution of agricultural policies in India since 2000, focusing on current policy settings and institutional structures established to implement such policies. It also presents a quantitative evaluation of support provided through India’s domestic and trade policies, based on the support indicators developed by the OECD (including, among others, the Producer Support Estimate, the Consumer Support Estimate, and Total Support Estimate).

English

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