Trade Liberalization and Diversification in Indian Agriculture

Abstract

The paper finds that trade liberalization in Indian agriculture has expectedly promoted specialization in areas of advantage, namely the superior cereals and gone against diversification towards oilseeds. Trade liberalization seems to have picked up where green revolution left off while diversification suffered portending some well known ill effects. Since oilseeds that lose in the process and coarse cereals they replace and that have been on a decline for some decades are suited to dry environments whereas the superior cereals demand more water and other costly inputs, there is a need to seriously consider the concerns of diversity, sustainability and poverty in a heterogeneous agriculture when negotiating trade and designing policy.