The agriculture sector reforms announced yesterday by FM @nsitharaman are historic at multiple levels. It frees up Indian farmers & the food supply chain after 700 years of exploitation (so it is not just about reversing a socialist era mistake). 1/n
The origin of the license-permit system and the systematic tilting of markets/prices against farmers was introduced by Alauddin Khilji circa 1300 in order to feed his army and enrich the Turkic nobility, while deliberately impoverishing the population. 2/n
It is an extraordinary reflection of our slave understanding of history, that Indian textbooks still present Khilji's systematic exploitation as "reform" and instead blame the traders who were subject to arbitrary inspector raj 3/n
This same tilted agricultural policy was used by the East India Company to force Indian farmers to grow indigo (for Manchester) and opium (for China), and then sell it at depressed prices through agents. It completely impoverished rural India and caused repeated famine 4/n
Interestingly, the British were very careful to keep their own hands clean so that the blame fell on the traders. This is the source of 1950s and 60s film plots. Meanwhile, those who provided the supply chain, were accused of "hoarding". 5/n
Now government interventions are needed sometimes in extreme situations - say wars - when markets get disrupted (this will be true even in the future). However, it is indefensible that a license-permit raj was perpetuated at the cost of the farmer for so long. 6/n
Thus, we had absurd fluctuations in onion etc prices every year - from very high to to very low. This has little to do with production, and everything to do with poor storage. Yet, those who invested in storage were raided and termed "hoarders". 7/n
As shown in the latest Economic Survey, those items that were considered "essential" were ironically the ones that suffered the largest fluctuations. Meanwhile, countries that do not even grow onions (say Singapore) enjoyed stable food prices 8/n
