New Delhi, March 24 -- The government over the weekend withdrew its 20% duty on onion exports. This relieves Indian farmers, who have often run into export constraints just as prices have risen to let them reap rewards.
These barriers are typically used to enhance local supply and cushion consumers from the inflationary impact of price upshoots. Since costly onions impact the country's poorest, given their dependence on them for vital dietary nutrition, price spikes can fuel mass discontent.
While over 800 million people are entitled to free foodgrain, onions need to stay cheap. But must farmers bear this burden? Ad-hoc curbs on their ability to sell freely hurts their interests.
A better-balanced policy would involve onion subsidies, ...
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