Storage infrastructure and agricultural yield: Evidence from a capital investment subsidy scheme

Arbeitspapier

In a developing economy, the availability of storage infrastructure is considered essential for two purposes; the reduction of post-harvest losses resulting in food shortage, and allowing for gains from inter-temporal trade due to potential arbitrage opportunities arising out of volatility in food grain prices. This paper provides empirical evidence on a lesser studied impact of storage infrastructure, viz, agricultural yield. The author exploits potentially exogenous variation generated by the intensity of access to a capital investment subsidy program for construction and renovation of rural godowns in India to identify causal effects of better storage on yield. He finds that the program led to an increase in rice yield by 0.3 tons per hectare, approximately a 20% increase compared to the baseline. A potential mediating channel for such an effect would be reduced storage costs facilitating better investments in productive inputs. As supportive evidence, the author finds that fertilizer consumption increased by 21% in response to the intervention.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Discussion Papers ; No. 2018-56

Classification and Topics

• Classification: Wirtschaft ; Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets ; Agricultural Policy; Food Policy ; Microeconomic Analyses of Economic Development ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
• Subject: storage ; yield ; fertilizer consumption ; Grameen Bhandaran Yojana

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Chatterjee, Somdeep
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2018

Further information

• Handle: http://hdl.handle.net/10419/180657
• Last update: 10.03.2025, 11:43 AM CET