The government eased export restrictions on Basmati rice and onions but increased import duty on edible oils to support domestic producers
These decisions benefit farmers, opening up export opportunities and boosting demand for domestic sunflower, groundnut, and mustard oils
India's agricultural trade policy often sends mixed signals, with frequent interventions affecting farmers' decisions and market stability
Measures to stabilise prices for consumers often conflict with income support for farmers, leading to implicit taxation through restrictive policies
Tighter stock limits on wheat may deter traders from investing in capacity, potentially hindering market growth and long-term production
Minimising government interventions can enable market forces to develop, boosting production, availability, and reducing price volatility