Dereg­u­la­tion will not curb food in­fla­tion

Down to Earth - - THE FORTNIGHT -

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.

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