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Spotlight: Econ Op-eds in Summary (Week ended 11th November'20)
20-11-12
Snapshots
1. Price controls and shortages
By: Daily FT
· Recent price controls on rice, although well intentioned to reduce costs of living, can have substantial negative implications. Supply can dry up as retailers find it difficult to sell rice at such prices, and black market sales shoot up with these controls.
· This isn’t limited to rice supply, as Sri Lanka’s food supply is very dependent on weather and other external factors. As supply keeps fluctuating, the state is forced to step in, with taxpayer money, in order to artificially bring about a sense of stability.
· Reform of the agriculture sector is important to avoid price hikes and food shortages. Focusing primarily on supply buffers and greater production techniques and investments in technology, the government will not only be able to protect local food security needs, but also expand into export markets as well.
For the full article - Refer Daily FT
(Compiled by: Chayu Damsinghe)
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