Y not allow private sector to import food items without requiring any permissions or paying high tariffs? Dont even have to worry about 'hoarding' then. Together, this will also incentivise investment in food storage infrastructure. One decision by cabinet & we r (almost) sorted! https://twitter.com/Abidsuleri/status/1352274183112298498
Sure, we may have less sugar mills after this and farmers may not find it worthwhile to plant sugarcane in as much quantity. But is producing sugar/sugarcane in current quantity really the most efficient use of our resources? The same for other protected crops!
If the intention behind maintaining existing system is to benefit the farmer, then a much better way of doing this is introducing crop-insurance for small farmers. Even unconditional cash transfers to small farmers every now and then is more efficient than the current system.
If the intention is food security, govt can expand its own storage infrastructure and maintain large buffer stocks. The billions of rupees government has been paying banks, sugar mills, and large farmers to keep the whole enterprise alive can find a better use elsewhere.
In any case, cabinet making decisions on import/export of key food items and their prices is not the way to achieve any of the above. If my arguments are still not convincing, here is another one: this didn't happen in 'riyasat-e-madina.'
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