Rice-Wheat Food System -- Socioeconomic and Policy Issues

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Rice-Wheat Food System-- Socioeconomic and
Policy Issues

• P K Joshi
• National Centre for Agricultural Economics and
• Policy Research, Pusa, New Delhi 110 012

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Organization of presentation

• 1. Background
• 2. Objectives
• 3. Institutional and policy issues
• 5. Performance of rice-wheat system
• 6. Sustainability of rice-wheat system
• 7. Issues for future research

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I. Background

• Rice and wheat are the most important crops in
  the Indo-Gangetic Plain (IGP)
• IGP was characterized for green revolution as a
  result of HYVs of rice and wheat
• The region contributes about 60 of total rice
  and wheat production in the country
• This region accounts for more than 75 of total
  procurement in the country

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Emerging issues

• Over production is burdening state exchequer
• Rice and wheat yields are stagnating
• Total factor productivity is decelerating
• Intensification led to degradation of natural
  resources

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II. Objectives

• How is the performance of rice and wheat in the
  Indo-Gangetic plain?
• Production
• Profitability
• Sustainability
• What are the key sources of production growth in
  rice and wheat?
• How to sustain production of rice and wheat in
  the Indo-Gangetic plain?

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Study area
Indo Gangetic Plain
TGP
UGP
MGP
LGP
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Study domain
Sub-Regions
Indo Gangetic Plain
FS
Plains
Arid
NWP
SWP
CP
NEP
EP
Vindyan
NEP
SBP
NBP
BP
RP
CAP
ACSP
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Policy initiatives

• Subsidy on
• Fertilizer
• Canal water
• power tariff
• Improved varieties of seeds
• Credit
• Minimum support prices
• Assured procurement of rice and wheat

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Institutional aspects

• Investment in agricultural research
• Seed sector
• Credit institutions
• Irrigation network

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III. Performance of Rice and wheat
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Production of Rice and Wheat in Indo- Gangetic
Plain
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IV Sources of growth in rice and wheat production

• Technology
• Area
• Policy

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Sources of area expansion

• Utilization of fallow lands
• Cropping intensity increased from 130 in 1967 to
  175 in 1998
• Crop substitution
• Coarse cereals, pulses, oilseeds
• Management of degraded lands
• 1 m ha alkali soil was reclaimed
• Contributed gt20 of increased production

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Sources of change in gross income-rice
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Sources of change in gross income-wheat
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Part III

• Sustainability issues of rice and wheat

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• Indicators of sustainability
• Economic Indicators
• Growth in production
• Yield level
• Yield stability
• Environmental Indicators
• Groundwater
• Land degradation
• Biodiversity

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Sustainability Index of rice and wheat
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Sustainability status Of rice
1996-97
1966-67
Unsustainable regions
Unsustainable regions

• During 1966-67 unsustainable regions are Vindyan
  and South Bihar plain in Middle gangetic plain
  and Barind, Rorh and Alluvial coastal saline
  plain in Lower gangetic plain region.
• In 1987-96 , Plains in Trans gangetic plain
  North western plain in Upper gangetic plain
  South Bihar,North Bihar and North east in Middle
  gangetic plain and Central alluvial, Rorh, and
  Alluvial coastal saline plain in Lower gangetic
  plain becomes unsustainable.

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Sustainability status Of wheat
1966-67
1996-97
Unsustainable region
Unsustainable regions

• During 1966-67, all the regions except North
  eastern plain in Middle gangetic plain,were
  sustainable regions.
• During 1987-96, Plains in Trans gangetic plain
  North western and South western in Upper gangetic
  plain South Bihar, North eastern and North east
  in Middle gangetic plain and Rorh and Alluvial
  coastal saline plain in Lower gangetic plains
  were unsustainable.

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Future researchable issues

• Reform in irrigation sector
• Price policy
• Technology intervention in slow growth regions
• Agricultural diversification in high growth
  regions
• High value enterprises
• Export led enterprises
• Innovative institutional models

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Conclusions

• Policies, institutions and technologies played
  important role in increasing production of rice
  and wheat
• Growth rates in yields as well as of TFP of rice
  and wheat are decelerating
• Deceleration in growth of yields and TFP in
  low-yielding regions is a matter of serious
  concern

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Conclusions

• Many environmental problems have erupted as a
  result of defective policies
• Huge potential exists in increasing yields of
  rice and wheat
• Opportunities are to be explored in lagging
  regions
• Input price policies need to be corrected for
  their efficient utilization, and containing
  degradation of natural resources

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• Thank you

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