THe Blog

July 30, 2018

Modi courts India’s farmers with higher prices

Vivek Dehejia, Resident Senior Fellow at IDFC Institute, is quoted in a Financial Times article on how Narendra Modi is trying to shore up his flagging support among farmers, before next year's election. Excerpts:

 

"It is the triumph of populism over good economics,” Vivek Dehejia, senior fellow at Mumbai’s IDFC Institute, a think-tank, said of the price increase. “The objective is to shore up support among the farming community, where Mr Modi and the BJP government are seen to be vulnerable. But it does nothing to solve the underlying problem, which is that there are far too many people doing inefficient, low-productivity agriculture.” 

 

Rather than being delighted, farmers’ organisations have been dismissive, pointing out that the price increases will benefit just the small minority of farmers who are able to sell their crops to the government. "

 

Read the full article here.

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