System of Promoting Appropriate National Dynamism
for Agriculture and Nutrition


Impact of India’s National Food Security Act on Domestic and International Rice Markets

Publisher: IFPRI

Policy making in food security is at a crossroads in India, particularly for the rice crop. Whereas India has emerged has a leading rice exporter over the last two years, the government has also introduced a large food subsidy program called the National Food Security Act. The program requires that 33.6 million metric tons of rice per year be distributed to the marginalized rural and urban populations of the country. In this study, the the long-term impact of India’s Food Security Act on its domestic rice market and the international market for rice is analysed. A structural demand-and-supply model is applied to India’s rice market and link it with the world rice market, as part of a broad partial equilibrium modeling system of international agriculture commodity markets. We specifically focus on three different scenarios—subsidy as a price effect, subsidy as an inelastic income effect, and subsidy as an elastic income effect—under the broader framework of the National Food Security Act.

Author(s): Deepayan Debnath, Suresh Babu, Parijat Ghosh, MIchael Helmar | Views(443) | Download (237)

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