All Things Policy Unpacking India's Agricultural Trade
Sep 15, 2025
Anisree Suresh, a Research Associate with the GeoEconomics Program, sheds light on India's agricultural trade policies. She discusses the untapped export potential and the importance of calibrated liberalization and tariff easing. Anisree critiques the minimum support price system and explores how cultural influences affect agricultural regulations. They also delve into opportunities in the food processing industry, particularly with spices and shrimp, advocating for thoughtful trade agreements that benefit both exports and local farmers.
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Policy Goals Shaped Trade Outcomes
- India prioritised food security and self-sufficiency in agriculture, shaping restrictive trade policies since independence.
- These policies weakened competitiveness, limiting consumer choice and farmer incomes in export markets.
MSP Transformed Market Incentives
- MSP started as an insurance floor but became a 'dream price' that distorts production choices and discourages market signals.
- Concentration on MSP crops led to undiversified output and reduced export competitiveness.
Phase Out Harmful Export Controls
- Remove counterproductive minimum export prices and export bans that make farmers uncompetitive abroad.
- Target smaller, well-chosen liberalisations to expand farmer income without harming domestic sensitivities.