A. Sachindra Babu, M. Reshma
The analysis of Global competitiveness has been carried out to identify the overall impact on production and consumption in the state. Dairy production policy should have two clear focuses, private incentives to motivate farmers and other intermediaries to achieve their objectives. In addition, the social incentive, which influences the entries society, is primarily concerned with economic growth and equity. Whether the dairy industry imposes a drain or gain to the economy? Will a drop in world dairy prices affect the trade position? What are the types of support needed for the industry in terms of infrastructure, extension and research? What are the merit subsidies that can be provided to the dairy industry? These and related issues are addressed in this analysis. The private and social concepts are distinct and important from a policy perspective. The difference can provide valuable insights how policy can improve economic performance. It can provide ways of comparing and ranking commodity system in terms of profitability and comparative advantage. This paper deals private and social perspective in the context of analyzing performance of agricultural commodity system, which employs a simple analytical tool called the Policy Analysis Matrix (PAM).
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