| Popis: |
Rising prices is a growing concern in developing countries especially in the context of food security. The welfare impact of such a price rise has important policy and regulatory implications. In this paper, we have analysed the welfare effect of a price rise of staple food items among Indian rural farmer households using the net benefit ratio (NBR) criterion. NBR is defined as the value of net sales of a commodity as proportion of income. The study is based on secondary data including a detailed NSS 61st round household survey covering (approximately) 80,000 rural households and 45,000 urban households in India. Our main conclusions are that (i) both poor and rich farmer households who are net producers benefit from the price rise and (ii) the farmers with lower land size class and net consumers are likely to be worse off, if and only if they do not have alternate employment opportunity. |
