The export prohibition is a grave blunder for India, both economically and strategically, even if it is quickly repealed. It severely refutes recent assertions made by Indian authorities that their nation is the rightful and accountable leader of the emerging world.
Source: Deccan Herald
The reasons given by New Delhi for this move are well known: increasing domestic food costs and the impending general election in 2019. In India, political performance has historically been greatly influenced by low food inflation; yet, domestic rice prices have increased by more than 10% in the last year. Exports are to blame according to the administration.
Most Indian economists are unsure of why export restrictions are the best course of action for local consumers since the government is also sitting on large supplies of rice that it could easily give to less fortunate Indians or put on the open market to lower costs. Indian bureaucrats frequently assert that their trade-restrictive laws are intended to safeguard our millions of subsistence farmers, notably before the World Trade Organisation. However, in reality, policymakers rarely think about farmers.
If increasing agricultural income was the government’s top objective, exports would not be halted at a time when prices are rising and farmers have a rare chance to turn a profit. India has to realise that its actions have repercussions throughout the world if it wants to play a leading role in the world. Even in wealthier nations like the US, shoppersu2014many of them from the Indian diasporau2014have flocked to stores in an effort to stockpile different Indian kinds of rice.
Indian policymakers are prepared to respond to these criticisms. They will emphasise that the most popular Indian variety, basmati, is exempt from the prohibition. Indians living abroad, especially those from South India who like shorter-grain variants, would find little solace in this.
Source: Global News
Additionally, they could point out with absolute accuracy that despite the export prohibition imposed the previous year, India actually exported nearly twice as much wheat during the summer of 2022 as it had the year before. There were no systemic leaks to blame for this. In part, this was due to the fact that contracts made before the moratorium were still in effect. Additionally, foreign nations may influence Indian officials to create exceptions for particular wheat shipments, which was another factor. For rice, a comparable mechanism will be implemented.
India is attempting to have its cake and eat it too in that way. In addition to positioning itself as a generous supplier to the rest of the developing world, it wants to cling onto its grain. India has traditionally argued that it should take the lead in the developing world because, in contrast to the West or China, it treats other emerging nations equally. Indian officials have to reconsider their arbitrary export restrictions that make other countries feel more like supplicants. Global leadership necessitates taking on global responsibilities as well.
What do you think about this? Comment below.
