Striving to revive pulses in India with extension, input subsidies, and output price supports†

Abstract

Pulse production in India has stagnated relative to staple grains and cash crops, raising concerns about rural protein consumption. We experimentally evaluate an effort to increase local pulse production in Bihar. This intervention consisted of 2 years of input subsidies and extension to facilitate learning, followed by the creation of marketing organizations and a year of output price support to raise profitability. Farmers respond to price signals by expanding inputs when subsidized and increasing pulse sales under price supports. However, we see no evidence that the program shifted equilibrium production portfolios as pulses return to pre-intervention levels after the support ends. Results indicate that short-term learning by doing cannot overcome long-run barriers to local pulse production, even when farmers have a viable outlet to sell their surplus output.