The Policy Analysis Matrix of Maize Cultivation in Andhra Pradesh

Abstract

Policy Analysis Matrix analysis was carried out to study whether the maize production system of India is favourable to farmers. The results revealed that maize system enjoyed a total positive transfer of `152 per quintal on its tradable-input costs. If Government had not intervened, the maize farmers would have to pay `408 per quintal, but the actual policies permitted this cost to be reduced to `256. EPC (0.55) was less than one, indicated that the producers were not protected through policy interventions. The average DRC value of 0.43 indicated positive social profit and showed that the maize production was economically efficient and the country had a comparative advantage in the maize production. The estimated values have shown that maize production system was protected domestically through domestic policies.