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Agricultural Policy Monitoring and Evaluation 2019

image of Agricultural Policy Monitoring and Evaluation 2019

This annual report monitors and evaluates agricultural policies spanning all 6 continents, including the 36 OECD countries, the 5 non-OECD EU Member States, and 12 emerging economies. It is a unique source of up-to date estimates of support to agriculture using a comprehensive system of measuring and classifying support to agriculture – the Producer and Consumer Support Estimates (PSEs and CSEs), the General Services Support Estimate (GSSE) and related indicators – which provide insight into the increasingly complex nature of agricultural policy and serve as a basis for OECD’s agricultural policy monitoring and evaluation. Comprehensive country chapters and the Statistical Annex containing detailed background tables with indicators of agricultural support are available in electronic form at the publication website.

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India

Support to producers in India is composed of budgetary spending corresponding to 7.2% of gross farm receipts and positive and negative market price support (MPS) of +2% and -14.9% of gross farm receipts. Overall, this leads to negative net support of -5.7% of gross farm receipts (%PSE) in 2016-18. The negative value of the PSE means that domestic producers were implicitly taxed, as budgetary payments to farmers do not offset the price-depressing effect of complex domestic regulations and trade policy measures, which often lead to producer prices that are below comparable international market levels. Budgetary transfers to agricultural producers are dominated by subsidies for variable input use, such as fertilisers, electricity, and irrigation water. In turn, public expenditures financing general services to the sector (GSSE) correspond to just half of the subsidies for variable input use. Total budgetary support (TBSE) is estimated at 2.9% of GDP.

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