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During the past decade the Indian chickpea industry underwent a dramatic structural shift following the implementation of market-oriented policies by the Government of India. This paper examines consumer attitudes to quality characteristics of chickpea in India. A linear hedonic price model is estimated using auction price and quality data of chickpea samples obtained from major markets in India. Empirical results indicate that specific physical quality characteristics and purity standards are important factors influencing the price of chickpea in India. Thus, there may be an incentive for domestic producers and sellers of chickpea - and exporting countries - to improve the quality of their product, if improvements in specific physical characteristics and purity can be obtained cost effectively. As trade prospects grow for regionally important food crops like chickpea and other pulses, it is essential that food managers, commodity exporters, and crop breeders have access to critical market information in order to assess the relative economic importance of preferred quality traits and plan their strategies accordingly.

An Almost Ideal Demand System model is used to examine consumer behaviour in India using household survey data for the period 1973-74 through to 1993-94. The empirical results indicate that, for commodity groups, demand is inelastic, except for other foods and non-foods. The expenditure elasticity estimates indicate that milk and non-foods are luxury goods, while pulses, cereals, edible oil, meats, fruits and vegetables and other foods are necessities in the Indian diet. The results indicate that, for any increase in future expenditure, the largest percentage increase will be allocated to non-foods, followed by cereal, other foods, milk, fruits and vegetables, edible oil, pulses and meats, in that order. Estimates of future food supply and demand growth in India indicate that the gap between growth in domestic demand and domestic production is large, particularly for commodities such as pulses (deficit growing at 2.47% p.a.), but low for others like edible oils (0.02% p.a. deficit) and cereal (0.26% p.a. deficit). As a result, India is likely to see large increases in food imports in the future.

The Indian Sub-Continent (ISC) is the largest pulse producing and consuming region in the world. Australian scientists, producers, processors and exporters require detailed information about these markets. One study of these markets aims to describe the Indian chickpea market and to quantify the value of quality traits in the market using statistical analysis. This paper describes the Indian chickpea market and reports the results of about forty interviews with wholesalers, retailers, processors, brokers and commission agents which were conducted in eight key Indian markets in May and August 1999. A subsequent paper will present the results of an econometric analysis, which attaches values to the product traits of samples taken at the time of the interviews. The main conclusions of the interviews were that the Indian chickpea market is segmented mainly by the end-use. Australian desi chickpeas are perceived as not suitable for consuming whole or for making roasted chickpea because of their bitter taste. Desi chickpeas from Tanzania and Myanmar are considered to have a sweet taste. Australian desi is suitable for making dhal and flour because the bitterness is masked in the cooking. Australian desi peas are preferred to local and other imported chickpeas because of their high recovery rate, uniform and large size and low contamination. The size of kabuli chickpea is considered very important. Australia’s kabuli chickpea is smaller than the preferred size. The econometric analysis will determine the importance of chickpea size.

This paper develops a dynamic optimal intertemporal investment model under the adjustment cost hypothesis to analyse the structure of production and investment in Australia's pastoral zone. The dynamic model is applied to pooled cross-sectional and time-series data obtained from ABARE farm surveys for the period 1979 through to 1993. Empirical results provide strong statistical evidence to indicate that quasi-fixity of inputs of labour, capital, sheep numbers and cattle numbers are characteristic of the agricultural sector in the pastoral zone. The results reveal that it takes about two years for labour, a little over three years of capital, a little over two years for sheep flock inventory and cattle herd inventory to adjust toward their long-run optimal levels. Results indicate substitution between labour-capital and sheep-cattle input pairs. The results also indicate that output supply and input demand responses are price inelastic in both the short and long run.