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Non-PR, IFPRI1; CRP2; Policy Reform Initiative Project (PRIP); IFPRI-ICAR, SAO; SAR; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Demand for organic basmati rice (OBR), both at home and abroad, coupled with policy reforms in India have given rise to contract farming (CF) production in that nation. OBR production, however, is highly susceptible to weather and pest risks. This study investigates the impact of smallholders’ perceived production risks on their adoption of CF in OBR farming. We also assess the impact of CF in OBR production on yields, prices received, and the livelihood of OBR producers. We use farm-level data from smallholder basmati rice farms in India and the endogenous switching regression method to account for heterogeneity.

Non-PR, IFPRI1; CRP2; F Strengthening institutions and governance, SAO; SAR; DSGD; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), The promotion of cooperatives is widely viewed as the most important institutional arrangement for spurring dairy development in India and much of the success of the White Revolution in India is attributed to the cooperative framework of the country's dairy development strategies. However, empirical evidences on impact of dairy cooperatives based on sound econometric analysis are scarce. To bridge the gap in literature, this paper examines the impact of dairy cooperative membership on farm performance indicators, such as milk yield, net returns, and adoption of food safety measures (FSM) in milk production, using panel data from a survey of milk producers in 2007 and 2015 in Bihar, India. An endogenous switching regression model, which accounts for selection bias, is used in the analysis.

Non-PR, IFPRI1; CRP2; D Transforming Agriculture; A Ensuring Sustainable food production, SAO; PIM; A4NH, CGIAR Research Program on Policies, Institutions, and Markets (PIM); CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), As in many parts of the developing world, the share of high value crops in agricultural gross domestic product (AgGDP) has increased substantially in Nepal. We contribute to the literature on trends in agricultural development in the poorest countries by answering the research question on “Does transition from traditional to high-value agriculture reduce rural poverty in poor developing countries”? We also identified the drivers leading to this transition. The study uses survey data from three rounds of the nationally representative Nepal Living Standard Surveys: NLSS I (1994/1995), NLSS II (2004/2005) and NLSS III (2010/2011). Multi-level model was used to study the determinants of agricultural diversification. To estimate the causal impact of agricultural diversification on welfare measures, propensity score matching and instrumental variable techniques were used. Results indicate that there has been a rightward shift in the distribution of the share (percent) of high-value crops between 1995 and 2004 and between 2004 and 2010, respectively. The area as well as the shared by major cereals (paddy, maize, and wheat) is declining over years. However, it is increasing for high-value crops (potato, vegetables, spices/condiments, and fruits). The percentage increase in share of the high-value crops was higher in or adjacent to urbanized districts between 1995 and 2010. The factors positively associated with the agricultural diversification are female-headed households, caste, mother's education, net-buyer status, urban region, remittance, farm size, kitchen garden, improved seeds, telephone and refrigerator. We found positive impact of agricultural diversification towards high-value crops on rural poverty and monthly per capita consumption expenditure. However, for cereal crops grower, we find the negative impact on poverty and monthly per capita consumption expenditure.

Non-PR, IFPRI1; CRP4; CRP2; Policy Reform Initiative Project (PRIP), SAO; PIM; A4NH, CGIAR Research Program on Policies, Institutions, and Markets (PIM); CGIAR Research Programs on Agriculture for Nutrition and Health (A4NH), Using data from the 1995–1996 and 2010–2011 rounds of the Nepal Living Standards Survey, we study the empirical connections between household food expenditure and nutrition outcomes of children below the age of five years using multilevel and dose-response function approaches. We also examine the effects of dietary quality changes on child nutrition improvement between 1995 and 2011 employing Blinder–Oaxaca decomposition. We find that number of food groups consumed, monthly food expenditure, dietary diversity, and the expenditure shares on fruits and vegetables and animal protein have a positive impact on the expected height-for-age Z-scores. The dietary changes explain about 71 percent of the improvement in those scores between 1995 and 2011, underscoring the importance of dietary quantity, dietary diversity, and nutrient-dense food items for child nutrition outcomes.

Non-PR, IFPRI1; CRP2; CRP4; B Promoting healthy food systems; Policy Reform Initiative Project (PRIP), A4NH; PIM; SAO, CGIAR Research Program on Policies, Institutions, and Markets (PIM); CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), The paper measures dietary diversity among different income groups in Nepal and identifies the drivers of this diversity as a first step toward addressing the widespread prevalence of nutrient deficiency. The level of diversity in household diets is an indirect measure of dietary quality and the extent to which the nutritional needs of households are being met. However, there is limited understanding of the trends, patterns, and determinants of dietary diversity in Nepal. This study is an attempt to enrich the literature on this issue. Drawing on unit-level data from three rounds (1995, 2004, and 2011) of the Nepal Living Standards Survey (NLSS), we use multilevel modeling, quantile regression, and the Blinder-Oaxaca decomposition method to decipher the trends, determinants, and drivers of dietary diversity in Nepal. Our study finds that changes in household sociodemographic and agricultural characteristics are very important in explaining the improvement in dietary quality. Changes in household characteristics account for at least 37 percent of the observed improvement, and agriculture-related changes explain at least 16 percent of the observed improvement. Variables positively associated with dietary quality are remittances, social cash transfers, parents’ education, crop diversity, access to markets and paved roads, and ownership of a television and telephone, among others. Our findings are highly robust across the different model specifications. Our study concludes by calling for a multisectoral approach to tackle nutrition issues in Nepal.

Non-PR, IFPRI1; DCA; CRP2; F Strengthening institutions and governance; Capacity Strengthening; A Ensuring Sustainable food production; D Transforming Agriculture; IFPRI-ICAR, SAO; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), This study tests the hypothesis that differences in public spending explain interstate variations in land productivity, income, and rural poverty. More important, it aims to comprehend the contribution of key social and economic public investments along with private (farm household) investment toward agricultural income and inclusive growth. We address the following four key issues. First, what has been the magnitude of public expenditure and private investment on key services in rural India from 1981 to 2013, and how do states compare? Second, has the composition of public spending within the social and economic categories/heads changed across the states? If yes, has it affected the capital intensity in agriculture and irrigation? Third, what is the impact of key investments and input subsidies on farm productivity, income, and poverty alleviation, and which investment yields higher marginal returns? Last, is there any nexus between efficiency and welfare objectives due to public expenditure at the disaggregate level, and how can it be addressed?

Non-PR, IFPRI1; C Improving markets and trade; D Transforming Agriculture, DSGD; SAO, This study reviews the evolution of tractor use in India in the past few decades, and supplements this with a panel model analysis using factors associated with state-level tractor density growth. Growth in tractor use in India, unlike that in the United States and Japan, has occurred at relatively low wage rates and with a substantial majority of the workforce remaining in the agricultural sector. Considerable growth in domestic manufacturing has contributed to growth in tractor densities. Tractor density across the 14 major states in India between 1982 and 2012 was positively affected by income per capita, cropping intensity, and the average size of farmland holdings. Tractor intensity grew at a fast pace even in low-wage regions of India, indicating that relatively lower labor wages might not have been a binding factor for diffusion of farm machinery and tractors among smallholding farmers in India.

PR, IFPRI4; Open Access; CRP4; IFPRI1; DCA, A4NH; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), Chapter 3 gives a detailed description of pulse production dynamics across regions and over time. It divides the history since 1960 into four time periods: pre– and early Green Revolution; advanced and post– Green Revolution; postliberalization; and post– trade spike. To study the spatial movement in pulse cultivation, states are grouped into five geographic zones: north, east, south, west, and central. The chapter formally establishes that pulse production has shifted from traditional to nontraditional areas over time, moving from north to south and from east to west and central regions, with Madhya Pradesh and Chhattisgarh becoming the hub of pulses production.

PR, IFPRI4; Open Access; CRP4; IFPRI1, A4NH; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), During the past decade, because of the persistent deficit in India’s pulse sector, the sharp rise in pulse prices has coincided with significant changes in the nature and extent of the pulse trade. Surprisingly, no systematic study has been done on the evolution of this trade, despite the fact that the role of trade in the price formation of pulses is becoming increasingly important. This chapter attempts to fill this research gap. Since exports of pulses from India are comparatively small, we focus on imports.

PR, IFPRI4; Open Access; CRP4; IFPRI1; DCA, A4NH; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), In this chapter we study the dynamics of consumption of pulses and assess pulses’ nutritional role with a focus on proteins. We note variations among different income strata, highlighting the higher protein deficiency among low-income groups and the higher price responsiveness of poorer consumers. We discuss the likely ineffectiveness of targeted consumer subsidies. Subsequently, using demand-system estimation, we make projections for the demand for pulses in India to 2030.

PR, CRP4; IFPRI1; Open Access; IFPRI-ICAR, A4NH; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), India, a country with high concentrations of poor and malnourished people, long promoted a cereal-centric diet composed of subsidized staple commodities such as rice and wheat to feed its population of more than a billion. Today, however, dietary patterns are changing. Policy makers, researchers, and health activists are looking for ways to fight hunger and malnutrition in the country. As they shift their focus from calorie intake to nutrition, neglected foods such as pulses (the dried, edible seeds of legumes) are gaining attention. Pulses for Nutrition in India: Changing Patterns from Farm to Fork explores the numerous benefits of a diet that incorporates pulses. Pulses, including pigeonpeas, lentils, and chickpeas, are less expensive than meat and are excellent sources of protein. In India, people consume pulses and other legumes for protein intake. Pulses also benefit the ecosystem. Among protein-rich foods, pulses have the lowest carbon and water footprints. Pulses also improve soil health by naturally balancing atmospheric nitrogen in the soil; thus, growing pulses reduces the need for nitrogenous fertilizer. Pulses for Nutrition in India: Changing Patterns from Farm to Fork looks at the country’s pulses sector in light of agricultural systems, climate change, irrigation design, and how policies (including the Green Revolution) have evolved over time. To understand how pulses can help fulfill the objectives of India’s food policies, experts explore the role that pulse production plays in global trade; the changing demand for pulses in India since the 1960s; the possibility of improving pulse yields with better technology to compete with cereals; and the long-term health benefits of greater reliance on pulses. The analyses in Pulses for Nutrition in India: Changing Patterns from Farm to Fork contribute to the emerging literature on pulses and will aid policy makers in finding ways to feed and nourish a growing population.

PR, IFPRI4; Open Access; CRP4; IFPRI1, A4NH; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), Chapter 8 concludes, drawing lessons from the studies in the preceding chapters to provide policy suggestions for the way forward.

Non-PR, CRP4; IFPRI1; B Promoting healthy food systems; B.3 Food and water safety; ReSAKSS, SAO; A4NH, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), The demand for compliance with food safety measures (FSM) at farm level, an integral component of food security, is increasing. Yet, literature on the assessment of FSM at the farm level is scarce, especially for developing countries. To bridge the gap, this study investigates the status, estimates the cost, identifies the determinants, and analyzes the impact of compliance with food safety measures (FSM), using cross-sectional data from a survey of 684 dairy farmers in India. We use an ordinary least square (OLS) regression to examine the drivers of FSM adoption and we use the dose response function (DRF) technique to estimate the impact of FSM adoption on milk yield and profitability. The empirical results reveal that compliance with FSM at the farm level is low, with wide variations among milk producers. Drivers of FSM adoption include education, income, training, herd size, landholding, proportion of self-consumed milk, and households' perception of food safety. The DRF estimates reveal the positive impact of FSM adoption on milk yield and milk profitability.

Non-PR, Open Access; CRP4; IFPRI1, A4NH; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), What will it take for India, with a burgeoning population of well over a billion, to meet its food needs in the coming years? If the country is to speed progress in reducing hunger, malnutrition, and food insecurity, it must first revisit its food policy framework and level the playing field for nongrain crops. In Pulses for Nutrition in India: Changing Patterns from Farm to Fork, leading researchers consider the role that pulses can play in improving food security and nutrition as well as the changes necessary in production practices to accomplish these goals.

Non-PR, IFPRI1; CRP2; A Ensuring Sustainable food production; F Strengthening institutions and governance, SAO; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), A goal of agricultural policy in India has been to reduce farmers’ dependence on informal credit. To that end, recent initiatives have been focused explicitly on rural areas and have had a positive impact on the flow of agricultural credit. But despite the significance of these initiatives in enhancing the flow of institutional credit to agriculture, the links between institutional credit and net farm income and consumption expenditures in India are not very well documented. Using a large national farm household–level dataset and instrumental variables two-stage least squares estimation methods, we investigate the impact of institutional farm credit on farm income and farm household consumption expenditures. Our findings show that in India, formal credit is indeed playing a critical role in increasing both the net farm income and per capita monthly household expenditures of Indian farm families. We also find that, in the presence of formal credit, social safety net programs such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) may have unintended consequences. In particular, MGNREGA reduces both net farm income and per capita monthly household consumption expenditures. In contrast, in the presence of formal credit, the Public Distribution System may increase both net farm income and per capita monthly household consumption expenditures.

PR, IFPRI4; Open Access; CRP4; IFPRI1, A4NH; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), The remainder of this chapter presents some facts that form the background motivation for this book: the production and consumption patterns of India’s pulse sector, the global context of trade in pulses and the position of India therein, the nutritional and environmental characteristics that make pulses a salient crop in meeting human needs, and the different initiatives for the pulses sector taken up by the government of India.

Non-PR, IFPRI1; CRP2; A Ensuring Sustainable food production; D Transforming Agriculture, SAO; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Food safety is the most vital component of food security. One option to ensure food safety is through enhancing compliance at the farm level. This study investigates the status, estimates the cost, identifies the determinants, and assesses the impact of compliance with food safety measures in milk production in Nepal. The study is based on cross-section primary data collected at the farm level from six districts of Nepal. These districts are known for milk production and capture the geographical and institutional diversity of milk production in the country. The study shows that the status of compliance with food safety measures at the dairy farm level is not very encouraging. The intensity with which food safety practices are adopted shows wide inter- and intra-district variations. This intensity depicts a positive relationship to herd size. The additional cost of compliance with food milk safety measures reveals an inverse relationship with herd size. The factors associated with the adoption of food safety measures are caste, number of children and elderly people in a family, household labor size, herd size, access to information, inspection for conformity with the safety and quality standards in dairy farming, perception of households about food safety assistance provided by milk buyers, and market outlet types. We also provide evidence of the impact of food safety measures on farm-gate prices and farmers’ profitability.

Non-PR, IFPRI1; CRP7; A Ensuring Sustainable food production; E Building Resilience; D Transforming Agriculture; F Strengthening institutions and governance; G Cross-cutting gender theme; Women’s Empowerment in Agriculture Index, SAO, CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS), This study measures the willingness of male and female farmers to pay for climate-smart technology in rice. Rice is the most important crop in India in terms ofarea, production,and consumption. It is also the biggest source of greenhouse gas emissions among all crops. Direct-seeded rice (DSR)with drum seeder, a climate-smart technology, requires less labor and water and is more climate friendly than transplanted rice; yet,its adoption is slow in India. Theauthors of this studycarried out a discrete choice experiment with 666 farmers from the Palghar and Thane districts of Maharashtra to measure their willingness to pay for drum seeders—a key piece of equipment for adopting DSR. Both male and female farmers were surveyed to capture the heterogeneity in their valuation of the key attributes of drumseeders. Although both male and female farmers prefer cheaper drum seeders, the marginal valuation of different attributes of the drum seeder varies by the farmers’ gender. The authors also used the Women Empowerment in Agriculture Index (WEAI), developed by the International Food Policy Research Institute (IFPRI), to collect self-reported data on the role and say of women in agriculture. The respective gender roles in the family and on the farm seem to explain some of this difference. Men have a greater say over how the family spends the cash. Accordingly, men tend to have a higher willingness to pay for attributes that increase income (increase in yield) or reduce cash costs (reduction in the seedrate). Women contribute a large share of the labor for transplanting rice, much of whichis unpaid work on family farms. Not surprisingly, therefore, women seem to value labor saving significantly more than their male counterparts. Further, theWEAI data show that although men in the family have more say, women do have an influence on decisions regarding crop production and the adoption of new technologies,to an extent. Therefore, to enhance the adoption of drum seeders, the product

Non-PR, IFPRI1; B Promoting healthy food systems; CRP4; IFPRI-ICAR, SAO; A4NH, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), The pulse sector is undergoing dynamic changes globally and in several regions and countries to meet the challenge of growing demand in the face of sluggish production growth. Realizing the importance of pulses in the human diet, 2016 has been declared the International Year of Pulses (IYP). This report captures the dynamics of the pulse sector during the last three decades. The examination of pulse supply, demand, uses, trade, prices, and outlook would help researchers and policy makers make more informed decisions related to the sector. Pulse-based food is an important source of dietary protein and essential minerals, particularly for the vegetarian population. At the global level, the average share of pulses is only 5 percent of the total protein consumption but their contribution in several developing countries range between 10 and 40 percent. To meet the growing demand and raise their per capita availability, countries made efforts to increase production and explore trade opportunities to augment domestic supply. Overall between 1980 and 2013, pulses production at the global level grew at an annual rate of 1.3 percent but there were, however, two phases of pulses production at the global level. While there was almost a period of stagnation in production of pulses during the1990s, production has sharply increased since 2005. The bulk of the increase in production came from developing countries where both area and yield growth (from a low base) contributed to the production. For developed countries—where production also grew—the center of production shifted from Europe to North America and Oceania. For developing countries, two new centers of production emerged in Eastern Africa and Southeastern Asia (Myanmar).

Non-PR, IFPRI1; C Improving markets and trade; CRP2, SAO; MTID; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a country like Nepal with accessibility issues, underdeveloped markets, and a lack of amenities remains ambiguous. Contractors find it difficult to build links in these cases, particularly when final consumers have quality and safety requirements. However, a lack of other market opportunities makes the contracts more sustainable. The latter happens if there are product-specific quality advantages because of agroecology and, more important, lack of side-selling opportunities. Concerns remain about monoposonistic powers of the buyers when small farmers do not have outside options. Results of this study show that CF is significantly more profitable (81 percent greater net income) than independent production, the main pathway being higher yield and price realization. The positive impact of CF on farmers’ profits can help Nepal in harnessing the growing demand for pulses, especially in neighboring international markets, like India.

Non-PR, IFPRI1; CRP2; C Improving markets and trade; B Promoting healthy food systems, MTID; SAO; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Growing inequality has become an important concern in many countries. One of the ways that inequality is perpetuated is through differential market access across regions. This research deals with one of the primary determinants of regional inequality manifested in terms of market access. Nepal is one country where hierarchical geography leads to regional inequality. Differential market access can cause as well as accentuate inequality among farmers. Coordination arrangements such as contract farming can improve outcomes for the farmers and integrators on the one hand, but on the other hand it can accentuate inequality if only some regions benefit from it. With this background, in this paper we study the case of contract farming for exports with farmers in remote hilly areas of Nepal. The prospect for contract farming in such areas with accessibility issues owing to underdeveloped markets and lack of amenities is ambiguous. On the one hand, contractors in these areas find it difficult to build links, particularly when final consumers have quality and safety requirements. On the other hand, remoteness can make the contracts more sustainable if the agroecology offers product-specific quality advantages and, more important, if there is a lack of side-selling opportunities. At the same time, concerns remain about buyers’ monopsonistic powers when remotely located small farmers do not have outside options. This study hence quantifies the benefits of contract farming on remotely located farmers’ income and compliance with food safety measures. Results show that contract farming is significantly more profitable (offering a 58 percent greater net income) than independent production, the main pathway being higher price realization, along with training on practices and provision of quality seeds.

PR, IFPRI1; C Improving markets and trade, DGO; CKM; ESAO; WCAO; SAO; DSGD; MTID, In addition to global events and food policy changes, 2015 also saw important developments with potentially wide repercussions in individual countries and regions. This chapter offers perspectives on major food policy developments across the major regions: Africa, the Middle East and North Africa, Central Asia, South Asia, East Asia, and Latin America and the Caribbean. The individual regional sections cover many critical topics: Facing climate risks and growing populations with regional cooperation and accountability in Africa; Growing refugee populations, food insecurity, and conflict in the Middle East and North Africa; Vulnerability to external shocks and falling remittances that increase Central Asia’s food insecurity; New policies for food safety, nutrition, and financial and social inclusion in South Asia; Expected impacts of the Trans-Pacific Partnership in East Asia; Latin America and the Caribbean’s contribution to global food security and global environmental public goods

Non-PR, IFPRI1; CRP4; A Ensuring Sustainable food production; B Promoting healthy food systems; C Improving markets and trade; E Building Resilience, A4NH; MTID; SAO, CGIAR Research Program on Agriculture for Nutrition and Health (A4NH), This study was undertaken to analyze the dynamics of production for pulses in India, one of the most important crops in India from the perspective of nutrition as well as environmental sustainability. India has been persistently deficient in pulses in spite of significant investment by the government over time. Using secondary data for a long period of time, from 1950 to 2011, we study how production of pulses has changed across regions and over time in India. Realizing the role of pulses in the cereals complex, the study shows the changing scenario in pulses production as it was crowded out by cereals with the advent of Green Revolution technologies. We create typologies of different phases in the evolution of production in India. Results show that there have been pronounced movements in pulses, with production centers shifting regionally from north to south and east to west and some concentration in central India. Notwithstanding the turnaround in pulses in the past three to four years, pulses have been moving increasingly to marginal unirrigated areas. The econometric results based on fixed-effects estimation establish that as irrigation becomes available there is a switch away from pulses toward competing crops. Recent advances in technology with short- to extra-short-duration varieties that fit into cereal-based systems have opened up new avenues for pulses reflected in increasing production. Also, we find no evidence of crowding out of domestic production because of liberalized trade, which has been the case in pulses for a long period of time.

PR, IFPRI1, DGO; DSGD; MTID; WCAO; ESAO, In addition to global developments and food policy changes, 2014 also saw important developments with potentially wide repercussions in individual countries and regions. This chapter offers perspectives on major food policy developments in various regions including Africa, the Middle East and North Africa, Central Asia, South Asia, East Asia, and Latin America and the Caribbean. The individual regional sections cover many critical topics: -Renewed focus on the role of agriculture in broad economic growth, poverty reduction, and food and nutrition security in Africa - Policy reforms in fuel subsidies, agriculture, and food trade in the Middle East and North Africa - Economic challenges and opportunities for Central Asia’s food system - Responses to high food inflation and climatic risk in South Asia - Laying of the groundwork for multilateral cooperation on food policy in East Asia - Progress in South-South learning initiatives in Latin America and the Caribbean tempered by weather and other shocks

Non-PR, IFPRI1; CRP7; Theme 3; Subtheme 3.1, SAO, CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS), This study was undertaken to assess farmers’ preferences and willingness to pay (WTP) for various climate-smart interventions in the Indo-Gangetic Plain. The research outputs will be helpful in integrating farmers’ choices with government programs in the selected regions. The Indo-Gangetic Plain (IGP) was selected because it is highly vulnerable to climate change, which may adversely affect the sustainability of the rice-wheat production system and the food security of the region. Climate-smart agriculture (CSA) can mitigate the negative impacts of climate change and improve the efficiency of the rice-wheat-based production system. CSA requires a complete package of practices to achieve the desired objectives, but adoption is largely dependent on farmers’ preferences and their capacity and WTP.

Non-PR, IFPRI1; A.1 Global Futures and Strategic Foresight; CRP7, SAO, CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS), This study was undertaken to assess if various drought-proofing and drought-relief programs are effective in mitigating the impact of droughts on crop production and household consumption in rural Bihar, India. This study is relevant as Bihar has experienced four drought years since 2009. The drought in 2009 led to an increase in the number of poor people in the state from 2004-2005 to 2009-2010, in spite of rapid growth of gross domestic product in this period. The government of Bihar runs a number of drought-proofing and drought-relief programs to mitigate the impact of drought, but with little effect. The two largest social safety net programs-the Targeted Public Distribution System (TPDS) and the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)-provide little relief to drought-affected families in rural Bihar. Additional subsidy on diesel to irrigate Kharif crops in drought-affected areas does not reach many farmers. Delays, uncertainties, and high transaction costs in its disbursal to farmers further reduce the subsidy’s effectiveness. Public tubewells and subsidy on private wells and pump-sets fail to provide wide-scale relief for the drought-stricken area. The results of our year-long study of 160 farmers with access to cheap irrigation from solar powered pump-sets in Bihar showed that these farmers grew paddy in all their land in Kharif in 2013, in spite of low rainfall.

PR, IFPRI1; A Ensuring Sustainable food production; B Promoting healthy food systems; C Improving markets and trade; C.1 Macroeconomics, trade and non-agricultural policies; D Transforming Agriculture; E Building Resilience; F Strengthening institutions and governance; G Cross-cutting gender theme, DGO; COM; WCAO; DSGD; MTID; SAO

PR, IFPRI1; A Ensuring Sustainable food production; B Promoting healthy food systems; C Improving markets and trade; D Transforming Agriculture; E Building Resilience; F Strengthening institutions and governance; G Cross-cutting gender theme, DGO; COM; PHND; SAO

Non-PR, IFPRI1; CRP2; Theme 2; Subtheme 2.2; GRP27, SAO; PIM, CGIAR Research Program on Policies, Institutions, and Markets (PIM), Indian agriculture was transforming from a cereal-based production system toward high-value crops (HVC) during the 1990s. However, food security concerns resurfaced during the first decade of the 21st century, and the policy environment tilted in favor of cereal-based production systems, especially rice and wheat. This paper revisits an earlier study to evaluate how the policy shift influences the patterns and the sources of agricultural growth in India and assesses their implications for regional priorities for higher, more sustainable, and more inclusive agricultural growth.

PR, IFPRI1, DGO; DSGD; NDO

Non-PR, IFPRI1, MTID, Agricultural diversification towards high-value crops can potentially increase farm incomes, especially in a country like India where demand for high-value food products has been increasing more quickly than that for staple crops. Indian agriculture is overwhelmingly dominated by smallholders, and researchers have long debated the ability of a smallholder-dominated subsistence farm economy to diversify into riskier high-value crops. Here, we present evidence that the gradual diversification of Indian agriculture towards high-value crops exhibits a pro-smallholder bias, with smallholders playing a proportionally larger role in the cultivation of vegetables versus fruits. The observed patterns are consistent with simple comparative advantage-based production choices. The comparatively high labor endowments of the small farmers, as reflected in their greater family sizes, induce them to diversify towards vegetables. Although fruit cultivation is also labor intensive (as compared to cultivation of staples), fruits are relatively capital intensive, making them a less advantageous choice for smallholders who tend to have low capital endowments. Furthermore, both the probability of participation in fruit and vegetable cultivation as well as land allocation to horticulture decreases with the size of landholdings in India. Small or medium holders do not appear to allocate a greater share of land to fruits or vegetables. However, the share allocated to vegetables is significantly higher if the family size is bigger, while the reverse is true in the case of fruits." -- from Authors' Abstract

Non-PR, IFPRI1; DCA, MTID, This study examines the sources of crop income growth in Indian agriculture over the 1980s and 1990s. Using a method developed by Minot (2003), the analysis decomposes crop income growth into the contribution of yield increases, area expansion, price increases, and diversification from low-value crops to higher-value crops. The results confirm that at the national level, technology (higher yield) was the main source of crop income growth during 1980s, while rising prices and diversification emerged as the dominant sources of growth in agriculture during 1990s. Diversification towards higher-value crops such as fruits and vegetables accounted for about 27% of crop income growth in the 1980s and 31% in the 1990s. However, these national averages hide substantial regional variation. In the grain-dominated northern and eastern regions, price increases were the most important source of growth during 1990s, while in the southern and western regions crop income growth was led by diversification into higher-value crops. The results reflect the slowing growth of wheat and rice yields in India, as well as the growing importance of diversification into higher-value crops. Restoring the growth in grain yields will require investment in agricultural research and development, while facilitating further diversification involves institutional development to better link small farmers with growing markets for high-value commodities.

Non-PR, IFPRI1; GRP1; Theme 11; Subtheme 11.2; Subtheme 15.3; Theme 15; The future of smallholder farming; Capacity strengthening; Public Policy and Investment, MTID, This paper is an empirical analysis of the gains from contract farming in the case of poultry production in the state of Andhra Pradesh in India. The paper finds that contract production is more efficient than noncontract production. The efficiency surplus is largely appropriated by the processor. Despite this, contract growers still gain appreciably from contracting in terms of lower risk and higher expected returns. Improved technology and production practices as well as the way in which the processor selects growers are what make these outcomes possible. In terms of observed and unobserved characteristics, contract growers have relatively poor prospects as independent growers. With contract production, these growers achieve incomes comparable to that of independent growers.

Non-PR, IFPRI1; GRP27; Theme 11, MTID, "Rising per capita income, urbanization and globalization are changing the consumption basket in the developing countries towards high-value commodities (like fruits & vegetables, milk, meat, poultry, fish, etc.). This paper explores how smallholders can benefit from the emerging opportunities from a silent demand-driven changes in high-value agriculture in India. The study examines the institutional mechanisms adopted by different firms to integrate small producers of milk, broilers and vegetables in supply chain and their effects on producers’ transaction costs and farm profitability. The study finds that the innovative institutional arrangements in the form of contract farming have considerably reduced transaction costs and improved market efficiency to benefit the smallholders. The study does not find any bias against smallholders in contract farming. Also, the study does not find that the relevant firms have exploited their monopsonistic position by paying lower prices to farmers. On the contrary, contract producers were found enjoying benefits of assured procurement of their produce and higher prices. The study lists policy hurdles in scaling up the innovative models of vertical coordination in high-value food commodities" -- Authors' Abstract

Non-PR, IFPRI1; SAI; Urban Issues, MTID, Indian agriculture is diversifying during the last two decades towards High-Value Commodities (HVCs) i.e., fruits, vegetables, milk, meat, and fish products. The pace has been accelerated during the decade of 1990s. HVCs account for a large share in the total value of agricultural production. Supply and demand side factors coupled with infrastructural development and innovative institutions drive these changes. In this paper, the focus is on diversification towards HVCs in the context of urbanization. Group of urban districts (districts with >1.5 million urban population) have a higher share of HVCs compared to the urban-surrounded (near urban districts) and other districts (districts in the hinterland). Among the HVCs, vegetables and meat products have a higher share in urban districts compared to the other two groups. Milk production is more widespread due to excellent network of co-operatives and infrastructure facilities. Using GIS (geographic Information System) approach it was found that urban-surrounded districts with better road network connection to urban centers have been able to diversify towards HVC’s to meet the demand in the urban centers. Model results further confirm these findings. Thus, urbanization is a strong demand side driver promoting HVCs. Since urban population is growing at more than 3% per annum, demand for HVCs will drive their production. The analysis has also brought out regional variations in HVCs across different districts in the country that has implications on regional development and planning, and consequently on public and private sector investment strategies.