Agricultural Protectionism in India: Case for Market Reforms
Why in the news
An August 2025 opinion questioned the old logic of protecting Indian farming through trade barriers.
Key facts
- Tariff protection created layered shielding across farming, manufacturing and services, leaving low farm wages and weak competitiveness.
- MSP-style support favours staples the government stocks, causing surpluses (exports) in some crops and deficits (imports) in others.
- Too few factory jobs to absorb surplus rural labour keeps farm incomes low.
- Productivity gains rely on imported fertilisers.
Way forward
- Give farmers, who are entrepreneurs, fair market access.
- Cut risk instead of insulating; invest in GM crops, sustainable land and water use, logistics and warehousing.
- Shielding half the population from markets is unsustainable; farming must become a mature industry.
Exam angle
- Concept: food security paradox.
- Tool blamed: MSP for rice and wheat.
- Suggested inputs: GM crops, warehousing.