Deregulation will not curb food inflation
A COMMITTEE of state agriculture ministers has found that deregulation of the agriculture markets has increased transaction costs. This in turn will lead to food inflation, contrary to the perception that deregulation will bring it down. The committee was set up by the Union Ministry of Agriculture to suggest reforms in agri-marketing in India. It said that deregulation did not help in attracting investment from the private sector. The Centre needs to have a more consistent stand in its import-export policy as any sudden switch-on and switch-off in policy impacts farmers adversely. The committee said that organising farmers' groups will enhance their bargaining power.