Letter to BS: Price control is a dangerous drug in economic pharmacopoeia

Price control can have very adverse effects unless it is administered with wisdom and constant vigil

After reading reports in your paper on Niti Aayog’s recommendation on agri sector, I could recollect the comments on price control by eminent senior advocate Late Nani Palikhivala, which is still relevant. An exhortation to manufacturers and traders to hold the price is less fruitful than vigorous and realistic steps to increase production: It is easier to increase the national product than to change the national character. (Year 1967, Ahmedabad Management Association).

Price control is the most dangerous drug in the economic pharmacopoeia. In administering it, we must heed the advice of Hippocrates, who in the early days of medicine said,