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WTO and Indian Agriculture

Authors:
  • Stanford University World's Top 2% Scientists List 2023

Abstract

A mini-Ministerial negotiation meeting at WTO was held on July 21-29, 2008 at Geneva to achieve a breakthrough in Doha round collapsed. The ongoing debate over agricultural trade liberalization focuses on how best to eliminate policy distortions that arise from price supports, producer subsidies, import protection and export subsidies. Although the most recent attempts to reach an agreement under the Doha Development Agenda (DDA) have been unsuccessful to date, the push for greater trade liberalization is unrelenting so it seems that further reform of the world agriculture market is inevitable. The WTO's Agreement on Agriculture (AoA) has far-reaching implications for the global farm trade and economic prospects of developing and least developed countries which are assessed in the study. The book is useful for the students and researchers of economics, agricultural marketing, commerce, business administration and law. The book is also worthwhile to: policymakers, planners, trade development agencies, opinion makers, negotiators, practitioners and all those interested in the elimination of rural poverty and improving welfare of Indian farmers in enriching their understanding of the impact of WTO on pattern of world farm trade, India's comparative advantage in farm trade, intricacies of the WTO rules and the present state of Indian agriculture vis-a-vis the WTO obligations.
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... Due to a faster agricultural growth is necessary to achieve the desired economic growth for the economy as a whole, it is imperative to find the way forward for enhancing the agricultural growth. However, the Government of India often imposes a ban on exports of different agricultural products from India (Ramphul 2010). From mid of the nineties, some measures were introduced towards liberalization in external trade in agriculture to face the domestic requirements and in the latter part of the nineties, the measures were to meet the requirements under the WTO which helped to make great impact on trade in agriculture. ...
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In Indian economy the Agriculture Sector is the pre-cursor of economic development contributing to it in four-fold manners. India contributes about 25% to the total global production and consumes 27% of world’s consumption and imports 14% of pulses in the world (FAO). India is the world’s third largest economy ($3 trillion) after the US and China. The service sector in India playing a key role in moving the economy towards development by contributing about 54.27% to the total GDP 2nd is by Industrial sector 29.34% and least is by Agriculture Sector 16.38% by FY 2020-21 and on the other hand out of total workforce in India 41.49% are employed agriculture sector 2020 (world bank). It accounts for nearly 14% of GDP, about 13% of exports and supports half of the country’s population as its principal source of income (58% of workforce). The objectives of the study are to analyse trends and patterns of agricultural exports and to analyse impact of agricultural sectors on Indian economy by Using data from FAOSTAT, World bank, Directorate General of Commercial Intelligence & Statistics, D/o Commerce. The share of agri-exports in total export value increased from 14.5% in 2015-16 to 19% in 2019-20. With the growth of Indian economy, the share of Agriculture in GDP has declined over the years and the contribution to GDP from an agrarian society has shown a decline owing to certain benchmarks.
... Due to a faster agricultural growth is necessary to achieve the desired economic growth for the economy as a whole, it is imperative to find the way forward for enhancing the agricultural growth. However, the Government of India often imposes a ban on exports of different agricultural products from India (Ramphul 2010). From mid of the nineties, some measures were introduced towards liberalization in external trade in agriculture to face the domestic requirements and in the latter part of the nineties, the measures were to meet the requirements under the WTO which helped to make great impact on trade in agriculture. ...
... Due to a faster agricultural growth is necessary to achieve the desired economic growth for the economy as a whole, it is imperative to find the way forward for enhancing the agricultural growth. However, the Government of India often imposes a ban on exports of different agricultural products from India (Ramphul 2010). From mid of the nineties, some measures were introduced towards liberalization in external trade in agriculture to face the domestic requirements and in the latter part of the nineties, the measures were to meet the requirements under the WTO which helped to make great impact on trade in agriculture. ...
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The cropping pattern and performance of different districts in growing different crops in Haryana are assessed using three standards measures, namely (i) location quotient, (ii) crop versatility index, and (iii) district versatility index over the period 1991-92 to 2008-09. We find that the specialization of maize in Ambala and Yamunanagar, cotton in Hisar, sugarcane in Yamunanagar and Ambala, mustard in Rewari and Mahendragarh, gram in Mahendragarh, bajra in Rewari are the highest during the study period with the value of location quotients to be more than two. The specialization of wheat in Panipat, Hisar and Fridabad, rice in Kurukshetra, Kathal and Karnal, jowar in Rohtak and Faridabad is highest during the period of study. The highest specialization of bajra is observed in Mahendragarh, Rewari and Gurgaon. The increase in value of versatility indices for majority of districts during 2000-01 to 2008-09 as compared to 1991-92 to 1999-2000 implies the move towards specialization. It is established that maize, gram and cotton are highly localized crops. The policy implications of our findings are: (i) the knowledge of crop location quotient provides useful information to policy makers and planners for development of district-wise crop-potential map as envisioned in the Approach Paper to the 12th Five Year Plan, and (ii) the estimates of districts specialization are useful for decision makers, agricultural technology management agencies, district planning committees and researchers to focus on crop improvement and production management within the potential region for each crop.
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The article describes the work done by Deen Bhandu Sir Chhotu Ram for the protection of rights and upliftment of peasantry class. We note that he was genuinely concerned with the plight of peasants, exploited by “soodkhor” (moneylender) of that time. Due to easy access to law, land and capital, moneylender was constantly manipulating prices and controlling market and debt relations. Sir Chhotu Ram did a lot to improve the economic status of the poor and victimized peasants through numerous legislative measures. One may get inspiration from Sir Chhotu Ram work and should share the agony of our impoverished peasants suffering from untold miseries, in whatever possible manner.
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The study seeks to examine the impact of the WTO's agreement on agriculture (AoA) on Sri Lanka’s agricultural trade performance. It is found that under the AoA regime, Sri Lanka’s share in the world’s total agricultural trade has increased. The importance of farm trade in the country’s overall foreign trade has improved. Further, evidence suggests that Sri Lankan agriculture has opened in new economic environment. In new trade order, value of Sri Lankan farm exports has grown faster than that of imports resulting into significant expansion of trade surplus. The normalized trade balance in agriculture has enhanced dramatically. Furthermore, the study finds that in the emerging liberalized farm trade order Sri Lanka’s comparative advantage is much better than other leading farm producers especially in the exports of: tea, copra, coconuts and natural rubber. For food grains Sri Lanka heavily relies on imports. In the WTO trade negotiations, Sri Lanka may press for an effective and substantial cut in developed countries protective measures and trade distorting agricultural subsidies, in order to safeguard and enhance its food production capacity.
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