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<p>Despite increasing oilseeds production, India imports more than half of its edible oil consumption. Dependence on imported edible oils results in price fluctuation, affecting consumers and producers. This study aims to identify key price and non-price drivers of the oilseed supply response using the Nerlovian supply response model. The findings reveal that global prices during sowing months, own support price and that of competitive crops, lower cost of cultivation and higher profitability boost domestic acreage. In the long run, development of irrigation infrastructure and high-yielding varieties are imperative for increasing production. Furthermore, the paper explores the factors that affect farm business income and demonstrates that, historically, improvement in productivity has supported farmers’ income, despite unfavourable trends in market pricing.</p>

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Supply Response to Policy Changes: Evidence from Indian Oilseeds Sector

  • 期刊论文

  • 发表日期：

    2025年2月22日

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  • D. Suganthi,
  • Rishabh Kumar,
  • Prachi Rojh,
  • N. Arun Vishnu Kumar

摘要

Despite increasing oilseeds production, India imports more than half of its edible oil consumption. Dependence on imported edible oils results in price fluctuation, affecting consumers and producers. This study aims to identify key price and non-price drivers of the oilseed supply response using the Nerlovian supply response model. The findings reveal that global prices during sowing months, own support price and that of competitive crops, lower cost of cultivation and higher profitability boost domestic acreage. In the long run, development of irrigation infrastructure and high-yielding varieties are imperative for increasing production. Furthermore, the paper explores the factors that affect farm business income and demonstrates that, historically, improvement in productivity has supported farmers’ income, despite unfavourable trends in market pricing.