Assessing competitiveness of indian cotton production a policy analysis matrix approach
Download
1 / 21

Assessing Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach - PowerPoint PPT Presentation


  • 88 Views
  • Uploaded on

Assessing Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach. Samarendu Mohanty Cheng Fang Jagadanand Chaudhary. Objectives. To assess the comparative advantages and protection of Indian cotton production. Using a Policy Analysis Matrix Approach

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Assessing Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach' - woody


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Assessing competitiveness of indian cotton production a policy analysis matrix approach

Assessing Competitiveness of Indian Cotton Production: A Policy Analysis Matrix Approach

Samarendu Mohanty

Cheng Fang

Jagadanand Chaudhary


Objectives
Objectives Policy Analysis Matrix Approach

  • To assess the comparative advantages and protection of Indian cotton production.

    • Using a Policy Analysis Matrix Approach

      • Measures input use efficiency in production using a set of profit and loss identities.

      • Estimates private and social prices for output and inputs and construct various indicators.


Indian cotton policy
Indian Cotton Policy Policy Analysis Matrix Approach

  • Minimum Support Price

  • Production Subsidies

    • Fertilizer

    • Power

    • Irrigation

  • Export Quota

  • No Import Tariffs


Subsidy surge
Subsidy Surge Policy Analysis Matrix Approach

Source: FAS Attáche Report



Indian cotton net trade
Indian Cotton Net Trade Policy Analysis Matrix Approach

000 MT


Indian cotton producing states area and production share in 98 99
Indian Cotton Producing States Policy Analysis Matrix Approach(Area and Production Share in 98/99)

Haryana

6.2%; 7%

Punjab

6%; 7%

Rajashthan

Madhya Pradesh

5.4%; 3.5%

Gujarat

17%; 32%

Maharashtra

35%; 21.5%

Andhra Pradesh

13.8%; 12.2%

Karnataka

Tamilnadu


Cotton yields by state
Cotton Yields by State Policy Analysis Matrix Approach


Cotton yield
Cotton Yield Policy Analysis Matrix Approach


Policy analysis matrix pam
Policy Analysis Matrix(PAM) Policy Analysis Matrix Approach


Pam indicators
PAM Indicators Policy Analysis Matrix Approach

  • Protection Coefficients

    • Nominal Protection Coefficients (NPC)

      • Output (NPCO)

      • Input (NPCI)

    • Effective Protection Coefficients (EPC)

  • Comparative Advantage Indicators

    • Domestic Resource Costs (DRC)

    • Social Cost-Benefit Ratio (SCB)

    • SCB without Land-Cost (LSB)


Data requirements
Data Requirements Policy Analysis Matrix Approach

Input Prices

Output Prices

Private

Social

Private

Social


World reference prices
World Reference Prices Policy Analysis Matrix Approach

  • US FOB Gulf Price for wheat, corn, sorghum

  • Canola cash price,Vancouver for rapeseed

  • Cotton A-index CIF Northern Europe for cotton

  • Raw sugar price FOB Caribbean

  • 40 to 50% shelled basis CIF Rotterdam for groundnut


Private and social output prices
Private and Social Output Prices Policy Analysis Matrix Approach

  • Private output prices: Domestic wholesale prices

  • Social output prices:

    • Imported Commodities: World reference price+Freight charge+Marketing & transportation costs.

    • Exported Commodities: World reference price


Private and social input prices
Private and Social Input Prices Policy Analysis Matrix Approach

  • Maharashtra Cotton(Tradable Inputs)


Maharashtra non tradable inputs
Maharashtra (Non-Tradable Inputs) Policy Analysis Matrix Approach


Protection coefficients
Protection Coefficients Policy Analysis Matrix Approach


Comparative ranking by crop

Table 3. Comparative Advantage Ranking By Crop Policy Analysis Matrix Approach

State

Commodity

DRC

SCB

LSB

Punjab

Wheat

1

1

1

Cotton

2

2

2

Rice

3

3

3

Haryana

Wheat

1

1

1

Rapeseed

2

2

2

Cotton

3

3

3

Rice

4

4

4

Maharashtra

Sugarcane

1

1

1

Groundnut

2

2

2

Cotton

3

3

3

Gujarat

Groundnut

1

1

1

Cotton

2

2

2

Rapeseed

3

3

3

Wheat

4

4

4

Andhra Pradesh

Groundnut

1

1

3

Corn

2

2

4

Sugarcane

3

3

1

Cotton

4

4

2

Rice

5

5

3

Comparative Ranking By Crop


Concluding remarks
Concluding Remarks Policy Analysis Matrix Approach

  • In case of liberalizations, it is likely that Indian cotton area, particularly in Maharashtra, will shift to cash crops such as sugarcane and groundnut.

  • In the other cotton growing states, area from least efficient crops may not go to cotton.

  • Indian cotton imports may increase significantly due to liberalizations.

  • U.S. trade negotiators should push for more liberalizations in Indian cotton sector.


ad