Economic Research Report No. (ERR-41) 52 pp

May 2007

Indian Wheat and Rice Sector Policies and the Implications of Reform

During 1998-2002, India experienced record public surpluses of wheat and rice, sharply higher Government subsidy outlays, and declining per capita consumption. By 2006, despite continued high subsidies and sluggish domestic consumption, India developed a large wheat deficit. The pronounced market cycles and declines in per capita consumption for India's major food staples are creating pressure for Indian policymakers to adjust longstanding policies.

Keywords: India, wheat, rice, production, consumption, trade, policy, reform

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