ICRIER Working Paper No. 195

OECD Agricultural Trade Reforms Impact on India's Prices and Producers Welfare

July 2007
By
Surabhi Mittal

Rich countries use a combination of domestic market interventions and border protection or export subsidies as a part of their domestic policies.

The present paper emphasizes on the welfare of the agricultural producers with the main focus on small farmers. The analysis presented in the paper is an approximation of the general equilibrium analysis.

The simulation exercise shows that due to elimination of subsidies in OECD countries the world crop prices are expected to rise. The results confirm that the depressed world prices can be corrected by removal of OECD subsidies, but the challenge for India remains: How much can these price corrections benefit the farmers?

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Author’s contact: surabhi@icrier.res.in                        

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