2017, Volume 70 - Issue 3
RSS feed citation: At RePEc
Publication date: 01 August 2017
ASYMMETRIC EFFECT OF REAL EXCHANGE RATE VOLATILITY ON AGRICULTURAL PRODUCTS EXPORT: A CASE STUDYRead the article
FACTORS INFLUENCING INTER-REGIONAL LIVING-COST DIFFERENTIALS: PANEL DATA ANALYSIS FOR THE CASE OF THE U.S.Read the article
HOW MUCH INEQUALITY IS HARMFUL FOR GROWTH? THE GROWTH MAXIMIZING RATE OF INEQUALITY IN THE CONTEXT OF THE MEXICAN ECONOMYRead the article
PROCYCLICAL TENDENCIES IN A SMALL OIL EXPORTERRead the article
WHEN IS LOWER INFLATION LESS STABLE? EVIDENCE FROM EIGHT DEVELOPING ECONOMIESRead the article
INDIA'S BURGEONING FOOD SUBSIDIES: HOW MUCH CAN WE BLAME THE FOOD CORPORATION OF INDIA?Read the article
Swaha SHOME, IBS Business School Mumbai India
Mala LALVANI, Department of Economics, University of Mumbai, India
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.
Food Subsidy, Economic Costs, Sales Realisation
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