SYLLABUS: DEPARTMENT OF AGRICULTURAL ECONOMICS

Courses Offered by Department of Agricultural Economics in M.Sc (Ag.) programme

Course No. Name of the Course Credit Semester

Hours
AEC 501 Agricultural Production Economics 2+1 I
AEC 502 Agricultural Marketing & Price Analysis 2+1 II
AEC 503 Agricultural Finance & Project Management 2+1 III
AEC 504 Globalization and Agricultural Policy 2+1 III
AEC 505 Benefit-Cost Analysis 2+1 I

AEC 501 Agricultural production economics 2+1

Objectives:
To develop the understanding of production process and the guiding economic principle for
agricultural production; to apply the appropriate economic principle under different
production scenario to optimize the production process

Syllabus:

Theory

UNIT I
Nature, scope and significance of agricultural production economics- concept of production in
economic sense. Factors of production-classification, interdependence and factor substitution.

UNIT II
Production functions - assumptions of production functions, commonly used forms and their
properties, limitations, specification, estimation and interpretation. Determination of optimal
levels of production and factor application-Law of diminishing returns. Optimal factor
combination and least cost combination of production’ application of Law of technical
substitution. Production possibility curve-theory of product choice, and selection of optimal
product combination.

UNIT III
Cost functions and cost curves, components, and cost minimization. Cost function and its
applications. Derivation of firm’s input demand and output supply functions. Shut Down and
Break-Even Analysis. Returns to scale- economies and diseconomies of scale.

UNIT IV
Technology in agricultural production, nature and effects and measurement- Measuring
efficiency in agricultural production; technical, allocative and economic efficiencies. Yield gap

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analysis-concepts-types and measurement. Nature and sources of risk, modeling and coping
strategies.

Practical
Different forms of production functions - specification, estimation and interpretation of
production functions – returns to scale, factor shares, elasticity of production - physical optima-
economic optima-least cost combination- optimal product choice- cost function estimation,
interpretation-estimation of yield gap - incorporation of technology in production functions-
measuring returns to scale-risk analysis through linear programming.

Learning Outcome:
Students will be able to acquire necessary theoretical and analytical skills to optimise the
agricultural production and analyse the financial health of any farm for possible progress
towards maximisation of profit.

AEC 502 Agricultural marketing and price analysis 2+1

Objectives:
Agricultural marketing in a broader sense is concerned with the marketing of farm products
produced by farmers and of farm inputs and services required by them in the production of these
farm products. Thus, the learning Objectives of agricultural marketing is to study both product
marketing as well as input marketing.
Syllabus:
Theory
UNIT I
Concepts and definition of Agricultural Marketing- its new role. Market and market structure.
Problems in Agricultural Marketing. Characteristic of agricultural product and production-
factors affecting demand for and supply of farm products. Market intermediaries and their role -
Need for regulation in the present context. Marketing Integration- efficiency, costs, margins and
price spread.
UNIT II
Marketing Co-operatives – APMC Regulated Markets - Direct marketing, Contract farming,
contract marketing and retailing - Supply Chain Management. State trading, Warehousing and
other Government agencies -Performance and Strategies - Market infrastructure needs,
performance and Government role – Value Chain Finance. Market information.
UNIT III
Spatial and temporal price relationship – price forecasting – time series analysis – time series
models – spectral analysis. Market segmentation, measurement and forecasting.
UNIT IV
Introduction to commodities markets and future trading - Basics of commodity futures -
Operation Mechanism of Commodity markets – Price discovery - Hedging and Basis -
Fundamental analysis - Technical Analysis. Trade policy for agriculture-International trade
agreements. Marketing research.

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Practical
Price spread and marketing efficiency analysis. Marketable & Marketed surplus estimation.
Marketing structure analysis through concentration ratios. Performance analysis of Regulated
market and marketing societies. Analysis on contract farming/marketing and supply chain
management of different agricultural commodities, milk and poultry products. Online searches
for market information sources and interpretation of market intelligence reports – commodity
outlook - Technical Analysis for important agricultural commodities - Fundamental Analysis for
important agricultural commodities - Presentation of the survey results and wrap-up discussion.

Learning Outcome:
After studying this course, students will have an understanding on structure of Agriculture
marketing in India, agriculture cooperatives, future trading, critical appraisal of agriculture
marketing, major Objectivess and instruments of agriculture price policy, buffer stock, appraisal
of agriculture pricing policy.

AEC 503 Agricultural finance and project management 2+1

Objectives:

To understand the role of agriculture in the economic development of India, to assess the impact
of agriculture on the macroeconomic indicators, Nature and scope of financial management in
agri-business, to understand the functions of agricultural lending products, to assess investment
analysis and projections, to understand the level and type of risk nalysis a bank must perform
while evaluating agri-business financing, to understand agri-value chain finance, to understand
the factors a bank must keep in mind when marketing agricultural banking products, to
understand the role of the regulator in agricultural financing

Syllabus:
Theory
UNIT I
Role and Importance of Agricultural Finance. Basic economic principles involved in finance.
Financial Institutions and credit flow to rural/priority sector. Agricultural lending – Financing
through Co-operatives, NABARD and Commercial Banks and RRBs. Micro-Financing and Role
of MFI’s - NGO’s, and SHG’s.
UNIT II
The concept of 3 C’s, 7 P’s and 3 R's of credit. Estimation of Technical feasibility, Economic
viability and repaying capacity of borrowers and appraisal of credit proposals. Credit inclusions
– credit widening and credit deepening.
UNIT III
Financial Decisions – Investment, Financing, Liquidity and Solvency. Preparation of financial
statements - Balance Sheet, Cash Flow Statement and Profit and Loss Account. Ratio Analysis.
UNIT IV
Project Approach in financing agriculture. Financial, economic and environmental appraisal of
investment projects. Identification, preparation, appraisal, financing and implementation of
projects. Project Appraisal techniques – Undiscounted measures. Time value of money – Use of
discounted measures - B-C ratio, NPV and IRR. Agreements, supervision, monitoring and
evaluation phases in appraising agricultural investment projects.

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UNIT V
Risks in financing agriculture. Crop Insurance programmes – review of different crop insurance
schemes - yield loss and weather based insurance and their applications.

Practical
Estimation of Demand and supply of agricultural credit and over dues. Assessment of Rural
Lending Programmes of Commercial Banks. Preparation of District Credit Plan. Preparation of
financial statements using farm/firm level data. Performance of Micro Financing Institutions -
NGO’s and Self-Help Groups. Identification and formulation of investment projects, Project
appraisal techniques – Undiscounted Measures and their limitations. Case Study Analysis of an
Agricultural project, Financial Risk and risk management strategies – crop insurance schemes.
Learning Outcome:
On the completion of the course, students will be able to learn sources of agricultural micro-macro
financing and credit systems, understand the history of financing agriculture in India,
significance and limitations of crop insurance, significance of farming cooperatives, acquire
knowledge of successful cooperative systems in India and newly launched crop insurance
schemes, estimation of credit requirement of farm business, preparation and analysis of project
reports and balance sheet, analysis and performance of commercial banks, cooperative banks to
acquire first-hand knowledge of their management, schemes and procedures.

AEC 504 Globalization and agricultural policy 2+1

Objectives:
To understand the concept of globalization and agricultural policy and their implication on the
society as a whole.
Syllabus:
Theory
UNIT I
Concept of globalization and the relevance of agricultural policies in India. Role of agriculture in
economic development. Development Issues – Population, Food Security, Rural Poverty,
Inequality and Environmental Concerns.
UNIT II
International Trade- The role of trade. Free trade versus Protectionism, Tariff, Producer Subsidy,
Export Subsidy, Import Quota, Exchange Rate, Terms of Trade and Trade Blocks. Trade Models-
Ricardian Model of Trade- Comparative Advantage and Absolute Advantage.
UNIT III
International Trade agreements – Uruguay Round – GATT – WTO – Agreement on Agriculture
and Lessons for developing countries. International co-operation in agriculture-IMF, World Bank,
IDA, IFC, ADB, CGIAR.
UNIT IV
Agricultural Policies- National Agriculture Policy, National Water Policy, National Seed Policy,
National Fertilizer Policy, Credit Policy, Price Policy, Crop Insurance Policy, etc.

Practical
Estimation of Trade Gains- Estimation of competitive and comparative measures like NPC, EPC,
ERP and DRC. Estimation of Effect of Tariff, Export Subsidy, Producer Subsidy, Import Quota

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and Export Voluntary Restraints on National Welfare. Estimation of Ricardian Model, Terms of
Trade and Exchange rate. Gini-coefficient and Lorenz Curve.
Learning Outcome:
Students will understand the concept of globalisation and agricultural policy and will be enabled
with necessary skills to analyse the impacts of changing agricultural policies and international
trade.

AEC 505 Benefit-cost analysis 2+1

Objectives:

The learning Objectives of Benefit-Cost Analysis is to provide decision-makers with information

about the social value of government-sponsored programs, projects and policies, so that they can
allocate resources in a way that improves the well-being of society as a whole. The course covers
the key concepts and tools that are essential for the evaluation of government activity by applying
cost-benefit techniques, including under conditions of uncertainty. Case studies are employed
to give students the confidence and insights required to undertake their individual
assignment. Alternative decision-making approaches will also be presented to provide a
perspective on the advantages and disadvantages of cost-benefit analysis.

Syllabus:
Theory
UNIT I
Concept and background of Benefit-Cost Analysis. Fundamental Principles of Benefit-Cost
Analysis.
UNIT II
Agricultural Development Projects and their Characteristics- Formulation of Agricultural
Development Projects.
UNIT III
Identification and selection of Agricultural Development Projects. Efficiency criterion- Benefit-
Cost Ratio (BCR), Net Present Value (NPV), Internal Rate of Return (IRR) and Pay Back Period
(PBP). Benefit-Cost Analysis from private and social point of view-Types and measurement of
Benefits and Costs at farm level and at aggregate level. Approaches of Benefit-Cost Analysis- with
(treatment) and without (control) approach; and Before and after approach. Equity criterion-
Subsistence criterion and Contributing criterion. Employment criterion. Physical environment
criterion.

UNIT IV
Application of Benefit-Cost Analysis in selection of development schemes- irrigation projects and
systems; purchase of farm assets like tractors and farm buildings; establishment of crop, dairy,
fishery and poultry farms; selection of agronomic practices; establishment of horticultural
projects and schemes like plantation, orchards, etc; selection of plant protection practices and
schemes like IPM; extension programmes; etc

Practical
Identification and formulation of investment projects, Project appraisal techniques – Discounted
and undiscounted measures of project evaluation and their limitations. Estimation of BCR, IRR,
NPV and PBP.

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Learning Outcome:
Upon successful completion, students will have the knowledge and skills to a solid
understanding of the basic rationale and techniques for applying cost-benefit analysis to
government-sponsored programs, policies and projects, the ability to plan and implement a cost-
benefit study and the ability to understand and critique a cost-benefit study prepared by someone
else.

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 Ph. D. Syllabus in the Department of Agricultural Economics

Course code Name of the course Credits

AEC 600 Research methodology and techniques 4+0
AEC 602 Advanced economic theory 4+0
AEC 603 Advanced course on agricultural economics 4+0
AEC 604 Courses on thesis writing 4+0

AEC 601 Research methodology and techniques 4+0

Objectives
To develop a way in relation to systematically solve a research problem relating to
agricultural economics. It is stated that how research is done scientifically and it also
aims to give the work plan of research. It provides training in choosing methods
materials, scientific tools and techniques relevant to the solution of the problem of
agricultural economics.

Syllabus:
Unit I
Concept and meaning of research-Purpose of research in social science-characteristics
of research in behavioural science
Theories of research- Construction of theories –Steps in research-Selection of problems-
Formulation and testing of hypotheses- generalization.
Research Design- types of research designs-Recent trends of behavioural research and
its research designs.
Details of sampling procedures-Probability sampling-simple random sampling
techniques-multistage sampling-pps sampling- stratified sampling- cluster sampling-
systematic sampling—Non probability sampling-quota sampling-spatial sampling-
representative sampling-Survey procedures, sampling errors.
Sources and types of data- Different formal and informal methods of data collection-
Construction of structured schedule and questionnaire-pilot study and pretesting-
logistic arrangements of data collection.
Variables –classification and operationalization of different types of variables relevant
to behavioural science.
Unit II
Analysis and interpretation of data-- Basic concepts of econometrics - Regression
equations and Models-programming techniques-linear and non-linear programming.

Learning Outcome
Students can develop a theoretical concept regarding the subject research methodology
and can able to understand the possible application in the field of agricultural
economics.

AEC 602 Advanced economic theory 4+0

Objectives
• Understand the fundamental principles and models of modern economics in
depth, and be able to apply them to economic and social issues.
• Be able to use mathematical models to analyse behaviour.
• Be able to apply advanced, modern econometric methods to the analysis of data.

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 • Have a deep mastery of the subject area in two fields of concentration.
• Be able to conduct scholarly research.
• Be able to describe and critique economic research to both technical and non-
technical audiences.
• Be able to explain economic principles, models and methods to others.
• Be prepared for employment in academic and/or non-academic institutions.

Syllabus:
UNIT I
Definition, nature and scope of agricultural economics. Role of agriculture in economic
development. Problems of agriculture in India.
UNIT II
Theory of Consumer Behaviour – Utility, Law of Diminishing Marginal Utility.
Applications of Indifference curve approach - Income effect and substitution effect.
Revealed Preference Hypothesis. Theory of Demand – Determinants of Demand,
Elasticity of Demand and Consumer surplus.
UNIT III
Theory of Production - Production functions, Returns to scale and economies of scale.
Theory of Costs – Cost curves. Law of Supply – Determinants of Supply, Elasticity of
Supply and Producers’ surplus.
UNIT IV
Market- Meaning, concepts and types. Behavior of Firms – Perfect Competition and
Monopoly.

UNIT V
National Income - Concepts and measurement. Classical theory of Employment and
Say’s Law. Modern theory of Employment and Effective Demand.

UNIT VI
Consumption function- Investment and savings. Concept of Multiplier and Accelerator.
Output and Employment - Classical theory Vs Keynesian theory.

UNIT VII
Money and classical theories of Money and Price. Keynesian theory of money and
Friedman Restatement theory of money. Supply of Money and Demand for Money.
Inflation- Nature, Effects and control.
UNIT VIII
Business cycles. Foreign Trade – Balance of Payment, Free trade versus Protectionism,
Tariff, Producer Subsidy, Export Subsidy, Import Quota, Exchange Rate, Terms of Trade
and Trade Blocks.

Learning outcome
Develop the ability to explain core economic terms, concepts, and theories.
o Explain the function of market and prices as allocative mechanisms.
o Apply the concept of equilibrium to both microeconomics and macroeconomics.
o Identify key macroeconomic indicators and measures of economics change, growth,
and development.
o Identify and discuss the key concepts underlying comparative advantage.
o Identify and explain major types of market failures.
Demonstrate the ability to employ the “economic way of thinking.”
o Discuss the application of marginal analysis.

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o Explain the use of benefit/cost analysis.
o Explain the contribution of economics to the analysis of non-market social issues.
Demonstrate awareness of global, historical, and institutional forces.
o Assess the role of domestic and international institutions and norms in shaping
economies.
Apply economic theories and concepts to contemporary social issues, as well as
formulation and analysis of policy.
o Describe how economic trade-offs and social values impact public/private social
policy, and the success or failure of policies to achieve intended outcomes.
Recognize the role of ethical values in economic decisions.
o Distinguish between normative and positive economics.
o Identify the limits of economic analysis.
o Compare and contract efficiency and equity.
Skill Areas
Apply both oral and written communication skills within the discipline.
o Present economic arguments in non-quantitative form.
o Synthesize the arguments found in both academic and popular economic media.
o Discuss economic concepts in an articulate manner in a classroom.
Demonstrate quantitative reasoning skills.
o Present an economic argument in quantitative terms.
o Demonstrate ability to solve systems of equations.
o Be able to conduct economic analysis using equations and graphs.
Demonstrate the ability to collect, process, and interpret data, including statistical
inference.
o Recognize how to use scientific method in economics.
o Formulate empirically testable hypotheses.
o Construct a data set of economic variables.
o Calculate, present, and discuss descriptive statistics.
o Conduct a regression analysis.
o Critically assess the statistical analysis of other researchers.
Demonstrate computer proficiency within economics.
o Access, download, and use electronic databases.
o Use standard software packages.
Be able to use critical thinking skills within the discipline of economics about economic
matters.
o Present viewpoints and alternative hypothesis on economic issues.
o Recognize underlying assumptions in economic models.
o Demonstrate ability to use the economic tools of analysis.

AEC 603 Advanced course on agricultural economics 4+0

Objectives
Various economic principles and business management concepts which are involved in
the decision-making process when organizing and operating a farming/ranching
operation. Includes production economics, record keeping systems, financial budgets
and analysis, crop and livestock enterprise analysis, leasing arrangements, depreciation,
farm business organizations, farm investment analysis, pasture/rangeland
management, and production efficiency indicators.

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Syllabus
UNIT I
Theory of consumer behaviour –Measurement of Income Effect and Substitution Effects.
Applications of consumer theory. Demand- demand functions and demand models –
Linear Expenditure System, Almost Ideal Demand System.
UNIT II
Market- Perfect competition, Monopoly, Monopolistic competition and Oligopoly.
Models- collusive and non-collusive models of oligopoly; Cournot model, Chamberlin
model, Stackleberg solution.
UNIT III
Welfare Economics - Concepts, problems, approaches and limitations of Welfare
Economics, Pareto conditions of maximum welfare and Pareto Optimality – Criteria for
social welfare - Social Welfare functions, Social versus Private costs and benefits.
UNIT IV
Review of Macro Economics concepts. Keynesian versus Classical theory. Consumption
Function and Theories of Consumption. Saving Function and Theories of Saving.

UNIT V
IS & LM frame work. General Equilibrium of product and money markets. Monetary
policy and Fiscal policy- Effectiveness of Monetary and Fiscal policy. Central banking.
UNIT VI
Unemployment-Theory of Unemployment, Phillips Curve controversy. Inflation-
Meaning, causes and theories.
UNIT VII
Social Accounting Matrix Framework. General Equilibrium Analysis. Concept of
Multiplier and Acceleration.
UNIT VIII
Balance of Payment & Adjustment Policies. Foreign Exchange Policy. Capital and
Current Account. Impact of WTO on Indian Economy.

Learning outcome
After completion of this course students may have the skills to succeed in a business,
agency, or academic environment and use agricultural economic concepts to quantify
and analyze issues as directed by their employer.

AEC 604 Courses on thesis writing 4+0

Objectives
1. Learn the structure of paragraph.
2. Use various strategies to write the lead-in and introduction.
3. Write a clear thesis statement and essay map
4. Write an essay that demonstrates unity, coherence, and completeness.
5. Support general statements with effective examples.
6. Develop examples with specific details to illustrate a point.
7. Proofread for minor/major grammar and mechanical errors.

Syllabus:
Unit I
Meaning of Thesis –Some basic dimensions and formality of submission-Components
of thesis and their importance

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Unit II
Presentation and writing of synopsis
Unit III
Developing Seminar presentation
Unit IV
Writing the introduction-Conducting review of literature - Developing theoretical
orientation and framing conceptual model-Organizing research methodology chapter-
writing the findings and discussion chapter- drawing the summary and conclusion –
writing implications and framing empirical model-citing the references and
appendices
Learning Outcome
Student may develop knowledge about the art of thesis writing after completion of
this course.

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