{"id":257704,"date":"2023-08-28T19:59:08","date_gmt":"2023-08-28T14:29:08","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=257704"},"modified":"2023-08-29T11:20:48","modified_gmt":"2023-08-29T05:50:48","slug":"not-quite-jai-kisan-exports-restrictions","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/not-quite-jai-kisan-exports-restrictions\/","title":{"rendered":"Not Quite Jai Kisan \u2013 Exports restrictions"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cNot Quite Jai Kisan\u201d <\/strong>published in \u201cThe Times of India\u201d <\/strong>on 28th August 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Agriculture<\/p>\n

Relevance:<\/strong> Agriculture pricing and marketing<\/p>\n

News<\/strong>– GOI has tightened restrictions on basmati exports. A minimum price for exports has been fixed at $1,200 per metric tonne. A contract below the floor price will be evaluated by a GOI committee for clearance.<\/p>\n

In July, exports of non-basmati white rice<\/strong> were prohibited. On August 25, GOI imposed a 20% export duty on parboiled rice.<\/p>\n

What is the justification provided by the Indian government for this move?<\/strong><\/h2>\n

It is meant to prevent exporters circumventing rice export bans<\/strong> by misclassifying<\/strong> the product as basmati.<\/p>\n

Global rice prices<\/strong> are increasing. The FAO rice price index<\/strong> reached its highest level in July 2023 since September 2011.<\/p>\n

India has maintained its position as the world’s largest rice exporte<\/strong>r for more than a decade. In terms of quantity, India’s rice exports are predominantly non-basmati varieties. <\/strong><\/p>\n

What are issues related to government restrictions on basmati exports?<\/strong><\/h2>\n

Indian farmers are facing an earnings limitation during a time when global supply and demand dynamics<\/strong> are in their favour.<\/p>\n

GOI’s efforts to manage domestic food inflation <\/strong>are understandable. Controlling inflation<\/strong> is crucial for maintaining India’s overall macroeconomic stability.<\/p>\n

However, this objective need not come at the detriment of farmers.<\/strong> The current approach creates a situation where gains for consumers come at the expense of farmers<\/strong>.<\/p>\n

Way forward-<\/strong><\/p>\n

GOI can purchase agricultural products that have been singled out for export restrictions or bans<\/strong> at an export parity price.<\/strong> The acquired stock could then be released into the market to stabilise prices.<\/strong><\/p>\n

This approach may incur a fiscal cost.<\/strong> But any temporary financial implications <\/strong>can be balanced through savings achieved <\/strong>in other areas.<\/p>\n

Adopting export parity prices<\/strong> has long-term advantages<\/strong>. Limiting farmers’ income during prosperous years can hinder their willingness to support agricultural reforms. <\/strong><\/p>\n

If farmers are uncertain about policy stability<\/strong>, persuading them to embrace reforms<\/strong> becomes challenging.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cNot Quite Jai Kisan\u201d published in \u201cThe Times of India\u201d on 28th August 2023. Syllabus: GS3- Agriculture Relevance: Agriculture pricing and marketing News– GOI has tightened restrictions on basmati exports. A minimum price for exports has been fixed at $1,200 per metric tonne. A contract below the… Continue reading Not Quite Jai Kisan \u2013 Exports restrictions<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[218,216],"class_list":["post-257704","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-agriculture","tag-gs-paper-3","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1703536245},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=257704"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/257704\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=257704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=257704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=257704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}