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Resource centre on India's rural distress
 
 

India’s wheat ban defies economic logic

-Livemint.com

The political economy favours the government taking tough measures to protect the consumers — more numerous and more vocal than producers — even if these measures go against the grain of economic sense.

India’s decision to restrict wheat export is disappointing but not a big surprise. Banning exports has been the government’s standard response to any shortage of agricultural commodities, denying farmers the benefit of global prices when these are high. The political economy favours the government taking tough measures to protect the consumers — more numerous and more vocal than producers — even if these measures go against the grain of economic sense.

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