India's Food-Security Problem Is Also the World's (wsj.com) 53
Climate change will almost certainly pose a major problem for India's food supply. India's Ministry of Agriculture and Farmers Welfare recently estimated that, in the absence of adaptation measures, rain-fed rice yields could fall 20% by 2050. But domestic agricultural policies are almost as big a problem. At present, the government sets price floors for two dozen crops, guarantees purchases of certain agricultural products, and provides subsidies to farmers for fertilizers, electricity and transportation. All that might seem positive for food security, but on net it probably hampers investment and food supply growth. Price floors mean that supply might sometimes exceed final buyers' willingness to pay during slow times, leading to wastage. And restrictions on exports artificially depress domestic prices when global demand is hot. The government's own investigations have found that Agriculture Produce Marketing Committee laws, which regulate the trade of farmers' produce by providing licenses to buyers, commission agents and private markets, lead to cartelization and reduced competition.