Freeing Trade in Agriculture-Implications for Resource Use Efficiency and Cropping Pattern Changes

If India frees up imports and exports of agricultural products at zero duty, there is a possibility of reaping significant gains from trade, while promoting resource use efficiency (RUE) in domestic cropping patterns. The declining share of cereals in gross cropped area may slow-down and even see reversal in some pockets. Similarly, area expansion under oilseeds will decelerate. India may emerge as a marginal exporter of cereals and cotton, while importing edible oils and pulses. From overall efficiency point of view, agricultural trade liberalisation would benefit India.