Economic freedom in agriculture

The boom and bust of agriculture will be solved when we shift from state domination to individual freedom

The market for food is bedevilled with difficulties in India. The recent announcements are an important beginning in solving these problems. It is important to focus on the three big decisions of private persons — what to sow, how much to invest, and what to store — and think of the incentive environment for better decisions. The way forward involves much less government involvement, warehousing, futures markets, international trade and national trade.

Paul Samuelson told a fable about agriculture, which is called “the cobweb model”. A good harvest is followed by a price crash, and then sowing goes down, which gives