At the risk of sounding like a broken record Sabhlok on Modi who seems to have some odd personal vendetta against the PM, in this case he is proven right. For long subsidized crops at fixed prices were the bane of Indian farming which led to stagnation of small farmers and large farmers corruptly colluding with the central government where they will find a ready buyer and thwart competition from foreign markets regardless.U.S pretty much has the same story
Farm Subsidies Put India in a Bind (Wall Street Journal story which I wont link for reasons given in comments below)
“The market support…encourages farmers to produce much more of the subsidized commodities than they would have otherwise, exacerbating the global glut.”
In other words subsidized crops led to over supply which in turn led to low prices and this put a farmer in an uncomfortable quandry. What is the solution, well subsidize them some more of course as per Modi thus perpetuating poverty for the small farmer. The large zamindars can take a hit and recover.
“India guarantees minimum prices for certain crucial crops to protect its large population of poor farmers. When prices plunge, it has to buy more. It usually sells the commodities it collects at a loss—some to India’s needy and some on global markets. Some of the stockpile just rots in government warehouses.”
Be it BJP, Congress , AAP or whichever character is in charge, our romanticized approach to agricultural leads to many wrong headed decisions. And oh god forbid the Indian consumer be exposed to crops from abroad! Cant let that, we have to protect our farmers, no matter what! Perhaps if farming was unprofitable for some folks, then they shouldnt be farming. At what point will the Indian government realize this?
I am reminded of some lunkheaded minister who was aghast the economic liberalization introduced by PM Rao may expose the Indian populace to that very agent of Satan- washing machines! Why , howled the minister, think of all the maid servants who will be unemployed. To which PVNR responded as he only he could "if we think like that, we would remain a nation of maidservants"
Similarly in his dimwitted RSS mindset wants us to remain a nation of farmers. But why single out the BJP , pretty all politicians suffer from this primitive mindset no matter how educated. The notion of the noble farmer as the backbone of the Indian economy is a hard one to displace.
To all these naysayers out there - I ask you what percentage of say U.S is involved in farming - a mere 5%! And yes they are self sufficient actually , thank you very much.
In the meantime......
“Government officials say they have no plans to reduce the subsidies….(India) even threatened to scuttle an important World Trade Organization agreement in 2014 unless it was given a guarantee that it could continue its subsidy and stockpiling programs. ‘Subsidies are meant to encourage productivity and better farming practices,’ said Sudhir Singh, an official at India’s agriculture ministry. ‘We are committed to our social-welfare programs.’”
Operation is successful- Patient is dead. That is the Indian government's mindset towards the economy.