Agricultural price policies under complex socio-economic and natural constraints—The case of...

REVIEWS 157 The author points out the limitations of the approach used in this study and suggests that it might be dangerous to generalise the results as they might apply to other less-developed countries. JOHN PEARCE Ahmed, R. Agricultural Price Policies under Complex Socio-Economic and Natural Constraints-The Case of Bangladesh. International Food Policy Research Institute, Washington, DC, USA, October, 198 1. In this study the author attempts to unravel the complexities of agricultural price policies by looking at the impact of stable food prices on the use of the inputs in the production of foodgrains and cash crops and on wage income, labour, household food consumption and linked non-agricultural employment. The focus of the study is Bangladesh where agriculture consists of small family farms with fragmented plots under extreme natural restrictions. The study indicates that farmers under these conditions respond rationally to price incentives but the effect on production is not great. Although rice occupies some four-fifths of the total cropped area, the area devoted to jute is important (normally about 7 % of the cropped area), since this crop accounts for about half of the nation’s exports. A policy to tilt prices moderately in favour of jute would be seen to benefit long-term growth of agricultural production and employment in Bangladesh. The study also suggests that price policy measures for agricultural production in Bangladesh should concentrate on developing marketing systems and rural infrastructures, supporting income through rural construction projects and selectively choosing labour- intensive agricultural products for price supports. Another important observation is that the continuous introduction of progressive appropriate technology must be a key factor to enable an optimum response to price incentives. JOHN PEARCE Sarma, J. S. Growth and Equity: Policies and Implementation in Indian Agriculture. International Food Policy Research Institute, Washington, DC, USA, December, 1981. In this study the agricultural policies of India from the early 1950s to the late 1970s are examined for their impact on agricultural growth and income disparities and a suggestion for an agricultural strategy to achieve growth with equity is presented. The author recommends a six-point strategy for agricultural development. Where potential for irrigation exists its development should be accelerated and small farms and areas of little irrigation should be given priority. Small and

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Transcript of Agricultural price policies under complex socio-economic and natural constraints—The case of...

Page 1: Agricultural price policies under complex socio-economic and natural constraints—The case of Bangladesh: Ahmed, R. International Food Policy Research Institute, Washington, DC, USA,

REVIEWS 157

The author points out the limitations of the approach used in this study and suggests that it might be dangerous to generalise the results as they might apply to other less-developed countries.

JOHN PEARCE

Ahmed, R. Agricultural Price Policies under Complex Socio-Economic and Natural Constraints-The Case of Bangladesh. International Food Policy Research Institute, Washington, DC, USA, October, 198 1.

In this study the author attempts to unravel the complexities of agricultural price policies by looking at the impact of stable food prices on the use of the inputs in the production of foodgrains and cash crops and on wage income, labour, household food consumption and linked non-agricultural employment. The focus of the study is Bangladesh where agriculture consists of small family farms with fragmented plots under extreme natural restrictions. The study indicates that farmers under these conditions respond rationally to price incentives but the effect on production is not great. Although rice occupies some four-fifths of the total cropped area, the area devoted to jute is important (normally about 7 % of the cropped area), since this crop accounts for about half of the nation’s exports. A policy to tilt prices moderately in favour of jute would be seen to benefit long-term growth of agricultural production and employment in Bangladesh. The study also suggests that price policy measures for agricultural production in Bangladesh should concentrate on developing marketing systems and rural infrastructures, supporting income through rural construction projects and selectively choosing labour- intensive agricultural products for price supports. Another important observation is that the continuous introduction of progressive appropriate technology must be a key factor to enable an optimum response to price incentives.

JOHN PEARCE

Sarma, J. S. Growth and Equity: Policies and Implementation in Indian Agriculture. International Food Policy Research Institute, Washington, DC, USA, December, 1981.

In this study the agricultural policies of India from the early 1950s to the late 1970s are examined for their impact on agricultural growth and income disparities and a suggestion for an agricultural strategy to achieve growth with equity is presented. The author recommends a six-point strategy for agricultural development. Where potential for irrigation exists its development should be accelerated and small farms and areas of little irrigation should be given priority. Small and