1
M.A. Part – I
Economics Paper - I
Agricultural Economics
1. Demand for Farm Products
Characteristics of demand for farm products-Concept and
measurement of own-price cross-Price and income elasticities
of demand and their interrelationship-Quantity and components
of demand for food-Growth in demand for food in developing
and developed countries-Forecasting of demand for food
products-Rationale for and types of government intervention for
food and nutrition security in developing countries.
2. Supply of Farm Products
Characteristics of supply of farm products-Issues relating to
specification of supply response function (Distributed laps,
acreage vs. production response etc.)- Rigidities in farm supply
response-Supply response of individual crops and aggregate
production-Market supply a subsistence crop-Supply response
in Indian agriculture-Price vs. non-price factors in induction
aggregate supply growth-Characteristics of farm product
markets in India-Role of farmers’ marketingco-operatives-
Futures trading-Towards free trade in agricultural commodities.
3. Economics of Production and Resource Use and Instability
in Agriculture
Resource and input use-Public/private capital formation-
Important production relationships-Economics of input and
product substitution-Imperfections in product and input markets
in developing agriculture-Decision making under risk and
uncertainty-Sources of price variability and income instability-
Rationale for and types of government intervention for price
support and reduction in instability-Alternative concepts of cost
of cultivation and determination of minimum support prices in
India-Role and optimum size of buffer stocks.
4. Rural Money Markets
Credit fragmentation – Organized and unorganized sectors-
Credit rationing-Moral hazards - Evolution of credit systems in
India-Imperfections in rural credit markets in India.
, 2
5. Labour Markets
Concepts of work, skill and productivity-Methods of
measurement of employment and unemployment-Free and
unfree labour -Types of employer-Employee relationships-
Determinants of wage rates – Labour market segmentation-
Gender based discrimination – Biases in data sources – time
disposition studies.
6. Land and Lease Markets
Types of farming-Historical evolution – Segmented property
rights-Characteristics and functioning – Economic, extra-
economic and legal restrictions-Lease market-Formal and
informal leases-Economics of share tenancy-Crop-sharing
practices in India-Inequity in distribution of holdings-Market
interlocking and inter linkages-Analysis of rural classes-Agraian
structure and agrarian relations in India.
REFERENCES :
1. Agarwal, Bina (1996), Women and Land rights in South Asia
(Module 6).
2. American Economic Association ( ), Readings in
Agricultural Economies (Module 1,2)
3. Bardhan, Pranab and Christopher Udry (1999), Development
Microeconomics, Oxford Publication, (Modules 4, 5, 6)
4. Basu, Kaushik (1990), Agrarian Structure and
Underdevelopment, Harwood (Modules 5, 6)
5. Cheung S.N.S. (1969), The Theory of Share enancy.
6. Dantwala M.L. (ed.)(1991), Indian Auricular Development
since Independence, Second Revised Edition, Oxford & IBH
Publishing Co. (General Reference)
7. Ghatak S. (1976), Rural Money Marketing Macmillan Co
(Modul 4)
8. Heady E.O. (1961), Economics of Agriculture Production and
Resource Usa, New Yark Englewood Cliffs Prentice-Hall
(Module 3)
9. K. Subbarao (1989), Agricultural Marketing Credit, ICSSR
(Modules 2,4)
, 3
10. Mellor J. W. (1969), The Economics of Auricular
Development, Vhora & Co. Cernell University Press
(Modules 1, 2)
11. Mies Maria (1986), Indian Women in Sub??????nce and
Agricultural Labour ???? Publication (Module 5)
12. Penson J.B., Capps Orai. Rosson C.P. (1991) Introduction to
Agricultural Economies prentice-Hall, Inc. (Module3)
13. Rudra, Ashok, (1982), Indian Agricultural Economics : Myth
and Realities, Allied Publishers (Modules 5,6).
14. Sen Bhowani (1962), Evolution of Agricultural ????aions in
India. People’s Public House, New Delhi, (Module-6)
15. Thorner, D. and Thorner A. (1962),Land and Labour in
India, Asia Publishing House (Modules 5,6)
, 4
1
Module 1
DEMAND FOR FARM PRODUCTS
Unit Structure
1.0 Objectives
1.1 Quality and Quantity Components of Demand for Food
1.2 Concept of & Measurement of Price and Income Elasticities
of Demand & Their Relationship
1.3 Contract Farming
1.4 Measures taken by the Government to deal with uncertainty
1.5 Questions
1.0 OBJECTIVES
To study quality and quantity components of demand for
food
To study the of Concept of & measurement of price and
income elasticities of demand & their relationship
To study the measures undertaken by the government for
food and nutrition security
1.1 QUALITY AND QUANTITY COMPONENTS OF
DEMAND FOR FOOD
Consumer’s preferences affect his demand for goods.
Farmer is not interested has one individual behaves, he is
interested in the market demand for the products which he
produces & input which he uses. Market demand of a commodity is
the sum of all individual’s demand & shows the aggregate
relationship between the supplies of goods for the sale & the price
paid for various quantities. Thus, “the amount of a commodity that
households wish to purchase is called the quantity demanded of
that commodity”.
M.A. Part – I
Economics Paper - I
Agricultural Economics
1. Demand for Farm Products
Characteristics of demand for farm products-Concept and
measurement of own-price cross-Price and income elasticities
of demand and their interrelationship-Quantity and components
of demand for food-Growth in demand for food in developing
and developed countries-Forecasting of demand for food
products-Rationale for and types of government intervention for
food and nutrition security in developing countries.
2. Supply of Farm Products
Characteristics of supply of farm products-Issues relating to
specification of supply response function (Distributed laps,
acreage vs. production response etc.)- Rigidities in farm supply
response-Supply response of individual crops and aggregate
production-Market supply a subsistence crop-Supply response
in Indian agriculture-Price vs. non-price factors in induction
aggregate supply growth-Characteristics of farm product
markets in India-Role of farmers’ marketingco-operatives-
Futures trading-Towards free trade in agricultural commodities.
3. Economics of Production and Resource Use and Instability
in Agriculture
Resource and input use-Public/private capital formation-
Important production relationships-Economics of input and
product substitution-Imperfections in product and input markets
in developing agriculture-Decision making under risk and
uncertainty-Sources of price variability and income instability-
Rationale for and types of government intervention for price
support and reduction in instability-Alternative concepts of cost
of cultivation and determination of minimum support prices in
India-Role and optimum size of buffer stocks.
4. Rural Money Markets
Credit fragmentation – Organized and unorganized sectors-
Credit rationing-Moral hazards - Evolution of credit systems in
India-Imperfections in rural credit markets in India.
, 2
5. Labour Markets
Concepts of work, skill and productivity-Methods of
measurement of employment and unemployment-Free and
unfree labour -Types of employer-Employee relationships-
Determinants of wage rates – Labour market segmentation-
Gender based discrimination – Biases in data sources – time
disposition studies.
6. Land and Lease Markets
Types of farming-Historical evolution – Segmented property
rights-Characteristics and functioning – Economic, extra-
economic and legal restrictions-Lease market-Formal and
informal leases-Economics of share tenancy-Crop-sharing
practices in India-Inequity in distribution of holdings-Market
interlocking and inter linkages-Analysis of rural classes-Agraian
structure and agrarian relations in India.
REFERENCES :
1. Agarwal, Bina (1996), Women and Land rights in South Asia
(Module 6).
2. American Economic Association ( ), Readings in
Agricultural Economies (Module 1,2)
3. Bardhan, Pranab and Christopher Udry (1999), Development
Microeconomics, Oxford Publication, (Modules 4, 5, 6)
4. Basu, Kaushik (1990), Agrarian Structure and
Underdevelopment, Harwood (Modules 5, 6)
5. Cheung S.N.S. (1969), The Theory of Share enancy.
6. Dantwala M.L. (ed.)(1991), Indian Auricular Development
since Independence, Second Revised Edition, Oxford & IBH
Publishing Co. (General Reference)
7. Ghatak S. (1976), Rural Money Marketing Macmillan Co
(Modul 4)
8. Heady E.O. (1961), Economics of Agriculture Production and
Resource Usa, New Yark Englewood Cliffs Prentice-Hall
(Module 3)
9. K. Subbarao (1989), Agricultural Marketing Credit, ICSSR
(Modules 2,4)
, 3
10. Mellor J. W. (1969), The Economics of Auricular
Development, Vhora & Co. Cernell University Press
(Modules 1, 2)
11. Mies Maria (1986), Indian Women in Sub??????nce and
Agricultural Labour ???? Publication (Module 5)
12. Penson J.B., Capps Orai. Rosson C.P. (1991) Introduction to
Agricultural Economies prentice-Hall, Inc. (Module3)
13. Rudra, Ashok, (1982), Indian Agricultural Economics : Myth
and Realities, Allied Publishers (Modules 5,6).
14. Sen Bhowani (1962), Evolution of Agricultural ????aions in
India. People’s Public House, New Delhi, (Module-6)
15. Thorner, D. and Thorner A. (1962),Land and Labour in
India, Asia Publishing House (Modules 5,6)
, 4
1
Module 1
DEMAND FOR FARM PRODUCTS
Unit Structure
1.0 Objectives
1.1 Quality and Quantity Components of Demand for Food
1.2 Concept of & Measurement of Price and Income Elasticities
of Demand & Their Relationship
1.3 Contract Farming
1.4 Measures taken by the Government to deal with uncertainty
1.5 Questions
1.0 OBJECTIVES
To study quality and quantity components of demand for
food
To study the of Concept of & measurement of price and
income elasticities of demand & their relationship
To study the measures undertaken by the government for
food and nutrition security
1.1 QUALITY AND QUANTITY COMPONENTS OF
DEMAND FOR FOOD
Consumer’s preferences affect his demand for goods.
Farmer is not interested has one individual behaves, he is
interested in the market demand for the products which he
produces & input which he uses. Market demand of a commodity is
the sum of all individual’s demand & shows the aggregate
relationship between the supplies of goods for the sale & the price
paid for various quantities. Thus, “the amount of a commodity that
households wish to purchase is called the quantity demanded of
that commodity”.
