The absurdity of restricting Basmati rice exports

Why is the UPA government helping Pakistani exporters at the cost of Indian farmers?

Imposing an export tax on rice was a bad idea; the Indian government should never have done it. It only hurts India’s rice farmers. (see these posts)

And in the international market for the high-end Basmati rice, the Indian rice tax gave a competitive edge…to Pakistani rice exporters.

The Indian government lifted the absurd export tax today. It also lowered, but still retained a floor price on Basmati exports. It is inexplicable why there should be an export restriction on a premium variety of rice. And it is unfathomable why the UPA government should think that hurting Indian exporters and lending a hand to Pakistani ones is somehow a wise thing to do.

6 thoughts on “The absurdity of restricting Basmati rice exports”

  1. Indian govt wanted to check inflation and so taxed exports, the routine babu way. But things have cooled down now.

    Not just Basmati rice, Indian govt should remove restrictions on exports and imports of many other things.

    Look at it this way – This is another diplomatic tool for Indian govt which wants to *hurt* Pak non-militarily. By removing export ban, India thinks Pak exports will be hurt. Long live diplomacy!! If the ban was not there, what could GOI have done to list as one of the “diplomatic actions against Pakistan”??

  2. Pardon my naivety, but wasn’t there a shortage of cotton, and therefore high prices, last year due to indiscriminate exporting, which further worsened the plight of the textile exporters in Tiruppur?

    Isn’t there a direct analogy here?

Comments are closed.