It is hard to understand the logic of raising the minimum support price for rice when the government is sitting on a mountain of foodgrain.
- In April, the Food Corporation of India & states held close to 52 million tonnes of wheat and rice, which is more than sufficient for all subsidized consumption needs during the year.
- Still, the government’s desire to show that it was doing something for farmers has outweighed economic rationale.
For example, it is understandable that support price for pulses has been raised. Most farmers growing lentils are poor and live in rain-fed areas. Wheat and rice farmers, in contrast, have access to irrigation.