Nirmala Sitharaman India recommendations pandemic innovations Government Nirmala Sitharaman India

Opinion | Solutions for the jigsaw puzzle that is Indian agriculture

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There are many stylized facts that illustrate the shackles around Indian agriculture. Local solutions need to emerge, and the Centre should undo the shackles Finance minister Nirmala Sitharaman announced a few farmer-friendly reforms as part of the financial relief package.

These included a dilution of the Essential Commodities Act (ECA) by taking some agricultural commodities off a restriction list.

Such a reform is always welcome. But, in a way, this is a negative freedom, i.e. freedom from arbitrary interference by the government.

The ECA is usually invoked to curb price spikes, because high food inflation hurts consumers. But such intrusiveness hurts farmers, too.

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