Opinion
Mint Quick Edit | Cost of onions: Go for core reforms
Summary
- To the relief of farmers, India has lifted its onion export duty. Onion price control matters, no doubt, but farms mustn’t be made to bear the burden of food security. The agricultural sector needs core reforms.
The government over the weekend withdrew its 20% duty on onion exports. This relieves Indian farmers, who have often run into export constraints just as prices have risen to let them reap rewards.
Also Read: America’s reciprocal tariffs will exacerbate the problems of Indian farmers
These barriers are typically used to enhance local supply and cushion consumers from the inflationary impact of price upshoots. Since costly onions impact the country’s poorest, given their dependence on them for vital dietary nutrition, price spikes can fuel mass discontent.
Also Read: Ajit Ranade: India must formulate a strategy to boost agricultural exports
While over 800 million people are entitled to free foodgrain, onions need to stay cheap. But must farmers bear this burden? Ad-hoc curbs on their ability to sell freely hurts their interests.
A better-balanced policy would involve onion subsidies, so that the government pays for its welfare agenda. Farmers should be free to maximize what they can get for their produce, even if that means shipping it to foreign markets.
Also Read: Indian agriculture needs support. Reform farm prices at the very least.
State intervention in farming is a reason for many troubles in this sector, which may be in for further turbulence should the US force policy revisions that worsen matters. This may be a good moment to take a broad look at Indian farming and initiate a wide set of reforms that serve all citizens well.
