Indian Farmers’ $120 Billion Implicit Taxation
Indian farmers faced $120 billion in implicit taxation in 2023, the highest globally, due to government policies like export restrictions on rice, sugar, and onions to stabilize consumer prices. This led to lower farm incomes and a negative market price support of $110 billion, despite $10 billion in budgetary transfers. While protecting consumers, these policies have widened income disparities for farmers. OECD reports show India’s negative trend over two decades, accounting for 62.5% of global implicit taxation. Policy revisions, enhanced support measures, and balanced trade strategies are essential to safeguard farmers’ livelihoods and ensure sustainable agricultural growth.
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