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LATEST NEWS UPDATES | What economists like Ashok Gulati still don’t understand about agriculture in India -Yogendra Yadav

What economists like Ashok Gulati still don’t understand about agriculture in India -Yogendra Yadav

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published Published on Sep 30, 2020   modified Modified on Oct 4, 2020

-ThePrint.in

Indian farmers have read the writing on the wall. India’s economists have not.

Do Indian farmers understand the agrarian economy better than Ashok Gulati? Ridiculous as it might sound, the answer could well be: yes.

Professor Ashok Gulati is the leading agricultural economist in India, and among the scholars I read, consult and respect. He combines solid scholarship with genuine concern for the farmers. He has the spine to stand against governments of the day, including the Narendra Modi-led one, and if need be, against farmers’ movements. In line with his position over the years, he has welcomed the three new agricultural bills, calling it the 1991 moment for Indian agriculture. Most enthusiasts of this measure, including ThePrint’s Editor-in-Chief Shekhar Gupta, have used his arguments to support these laws.

Sadly, Gulati is profoundly mistaken. It is not a mistake of biased scholarship, bad data or poor reasoning. It is a profound error of an economics that seeks to offer policy advice to the government. This became clear to me for the first time when reading a rich exchange between two economists, Jean Dreze and Ashok Kotwal. In response to Kotwal’s advocacy of cash transfer over subsidised food to the poor, Dreze drew a distinction between an economist who advises the government and an economist who advises the poor. The policy advisor must think of the possible benefits while assuming that his or her suggestions will be implemented fully and in the right spirit. The advisor to the poor must focus on the likely consequences of a policy, how would a policy be implemented, on the ground. Dreze said that on paper, direct cash transfer can be the most economical and efficient way to help the poor, but food-grain delivery through ration shops is their best real-life option.

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ThePrint.in, 30 September, 2020, https://theprint.in/opinion/what-economists-like-ashok-gulati-still-dont-understand-about-agriculture-in-india/513848/?fbclid=IwAR3ULThuYCWwRQBGkL03nnwv7xR_NFbQ3wKOd3kupDYguCuoxdPaQ9mk2yo


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