Import of Donated Commodities, Export of Feed, and New Technology of Milk Production

Operation Flood relies heavily on donated commodities. These donations make India the largest recipient of food aid from the EEC. The inflow of donated commodities is likely to have a contracting effect on the dairy sector of the Indian economy. India, on the other hand, is a major exporter of oilca...

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Bibliographic Details
Published in:Economic and political weekly 1985-07, Vol.20 (29), p.1227-1235
Main Authors: Surendar Singh, Kamaljit Singh
Format: Article
Language:English
Subjects:
Commodities
Emerging technology
Farm exports
Imports
Liquids
Market prices
Milk
Milk production
Safety stock
Special Articles
Supply
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Summary:Operation Flood relies heavily on donated commodities. These donations make India the largest recipient of food aid from the EEC. The inflow of donated commodities is likely to have a contracting effect on the dairy sector of the Indian economy. India, on the other hand, is a major exporter of oilcake meals. A significantly large quantity of it is being exported to the EEC. The domestic supply of this protein meal is otherwise inelastic. This has serious implications for the cross-breeding technology of Operation Flood II, the success of which depends, to a large extent, on the availability of readily digestible sources of energy. The main argument of this paper is that the import of donated commodities and the export of oilcakes are bound to slow down the rate of expansion of the Indian dairy industry and a continuation of such a policy would weaken the position of the Indian farmers vis-a-vis the European farmers.
ISSN:0012-9976
2349-8846