Regulations, Value Chains and Food Standards in Developing Countries: Panel Data Evidence from India

Abstract

Rapid growth in dairy consumption and food scandals in India in the 2000s increased awareness of food safety issues among consumers and policymakers. This led to the introduction of new standards. However, there is little information about how they affected farm-level activities and whether value chains played any role. Our paper addresses these questions using a two-round panel survey of dairy farms in Punjab and Andhra Pradesh. We find significant improvements in adoption of farm-level hygienic practices, especially in Punjab. Value chain innovations do not play a significant role in stimulating safety and quality improvements among dairy smallholders in India.