Posted 1/1/2024, 8:04:59 AM
Modi Shifts Farm Policies from Pro-Producer to Pro-Consumer as Food Inflation Soars
- Modi government swung from pro-producer policies in its first term to pro-consumer ones in its second term as food inflation rose
- Surpluses of cereals, sugar, and pulses in Modi 1.0 led to export incentives and import duties to protect domestic farmers
- Post-Ukraine invasion in Modi 2.0, import duties were cut and export curbs imposed on oils, wheat, rice, sugar due to supply constraints
- Food inflation hit multi-year highs in 2022-23, forcing roll back of farm laws allowing private sector trade without barriers
- Export and stock limits, contrary to farm laws, likely to continue at least till 2024 elections given high inflation hurting consumers