January 21, 2009agricultureEconomyForeign Affairsfree tradeIndiamarketsPakistan

The absurdity of restricting Basmati rice exports

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

This is an archived blog post from The Acorn.

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.



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