Contents of the volume

2017, Volume 70 - Issue 3

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 01 August 2017

ASYMMETRIC EFFECT OF REAL EXCHANGE RATE VOLATILITY ON AGRICULTURAL PRODUCTS EXPORT: A CASE STUDY

Otse F. Alegwu, Benjamin C. Asogwa, Goodness C. Aye

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FACTORS INFLUENCING INTER-REGIONAL LIVING-COST DIFFERENTIALS: PANEL DATA ANALYSIS FOR THE CASE OF THE U.S.

Richard Cebula, John CONNAUGHTON , Caroline SWARTZ

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HOW MUCH INEQUALITY IS HARMFUL FOR GROWTH? THE GROWTH MAXIMIZING RATE OF INEQUALITY IN THE CONTEXT OF THE MEXICAN ECONOMY

Jorge Charles-Coll, Elisabeth L. MAYER-GRANADOS

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PROCYCLICAL TENDENCIES IN A SMALL OIL EXPORTER

Roger Hosein, Isaac DIALSINGH, Jaymieon JAGESSAR

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WHEN IS LOWER INFLATION LESS STABLE? EVIDENCE FROM EIGHT DEVELOPING ECONOMIES

Georgios Karras

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INDIA'S BURGEONING FOOD SUBSIDIES: HOW MUCH CAN WE BLAME THE FOOD CORPORATION OF INDIA?

Swaha Shome, Mala Lalvani

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ACHIEVING SUSTAINABLE ECONOMIC GROWTH AND DEVELOPMENT IN COMMUNITIES ACROSS THE UNITED STATES

Oluwole Owoye, Olugbenga A. Onafowora

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Swaha SHOME, IBS Business School Mumbai India

Co-authors

Mala LALVANI, Department of Economics, University of Mumbai, India

India's Burgeoning Food Subsidies: How much can we Blame the Food Corporation of India?

Pages

353-390

Abstract

The Food Subsidy Bill of the Government of India has increased manifold in the past decades. The Food Corporation of India (FCI) is responsible for ensuring that the subsidy reaches both the producers through the support prices and to the consumers through the Public Distribution System (PDS). The high economic costs of the Food Corporation, along with low PDS prices contributes to the rising food subsidy bill. Some parts of this economic costs are within the purview of the FCI while others are completely outside its domain. Hence this paper attempts to ascertain the factors leading to the increasing food subsidy and the extent to which these are attributable to the FCI.  We find that, in fact, some of the major components of the economic costs, which are leading to rising food subsidy, are not within the control of the FCI and to that extent, the parastatal can be absolved of the blame. The villain of the piece appears to be the support price policy of the government and some components of the economic cost of FCI, which are outside the purview of the FCI. The paper also delves into analysing the cost components of FCI in an attempt to assess the performance of the parastatal itself.

JEL classification

H23

Keywords

Food Subsidy, Economic Costs, Sales Realisation

Index

  1. Introduction
  2. Economic cost of FCI
  3. Determinants of food subsidy
  4. Analysing the costs components of the FCI
  5. Financial position of FCI: some additional indicators
  6. Conclusion

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