Agriculture is the backbone of any nation and is safeguarded by the government by implementing duties on imports. This essay will discuss the reasons that I completely agree it is the best approach to protect the indigenous farmers and the economy in order to keep prices of commodities in check.
To begin with, some people argue that placing special taxes on food imports is not beneficial for the consumers as those items are available at cheaper rates from other countries. Even though, it is a narrow outlook which could result in large scale unemployment of the local population. In India, for example, the majority of the people are practicing farming as their profession, but will be out of work if imports are permitted without any check. Thus, it is feasible in short term tenure, but it makes the country venerable as it will not be self-sufficient to produce its own food and during wartime
However, creating a barrier between the local and the foreign products protects the domestic sector from the massive inflow of international products. This check is necessary as it inhibits import of cheaper materials which might hinder the domestic production and make them unsustainable. In India, for instance, cheap Chinese products flood the local markets, thus increasing the supply and causing demand supply imbalance. Importing eatables, moreover, without restriction, from other countries put undue financial strain on the economy. This is because the proceeds go to another enterprise and do not help in the advancement of the local goods. To illustrate, India alone imported more than 400 million dollars worth of cereals in the year 2017 which could have been avoided if the country was self-sufficient. Therefore, putting tariffs in place not only protects the regional producers, but it promotes the local industry to grow in the ever-rising competition.
To conclude, every country must have a system to protect the local industry from the global competition as it is essential for the health of the economy.
Agriculture is the backbone of any nation and
is safeguarded
by the
government
by implementing duties on
imports
. This essay will discuss the reasons that I completely
agree
it is the best approach to
protect
the indigenous farmers and the economy in order to
keep
prices of commodities in
check
.
To
begin
with,
some
people
argue that placing special taxes on food
imports
is not beneficial for the consumers as those items are available at cheaper rates from other
countries
.
Even though
, it is a narrow outlook which could result in large scale unemployment of the
local
population. In India,
for example
, the majority of the
people
are practicing farming as their profession,
but
will be out of work if
imports
are permitted
without any
check
.
Thus
, it is feasible in short term tenure,
but
it
makes
the
country
venerable as it will not be self-sufficient to produce its
own
food and during wartime
However
, creating a barrier between the
local
and the foreign products
protects
the domestic sector from the massive inflow of international products. This
check
is necessary as it inhibits
import
of cheaper materials which might hinder the domestic production and
make
them unsustainable. In India,
for instance
,
cheap
Chinese products flood the
local
markets,
thus
increasing the supply and causing demand supply imbalance. Importing eatables,
moreover
, without restriction, from other
countries
put undue financial strain on the economy. This is
because
the proceeds go to another enterprise and do not
help
in the advancement of the
local
goods
. To illustrate, India alone imported more than 400 million dollars worth of cereals in the year 2017 which could have
been avoided
if the
country
was self-sufficient.
Therefore
, putting tariffs in place not
only
protects
the regional producers,
but
it promotes the
local
industry to grow in the ever-rising competition.
To conclude
, every
country
must
have a system to
protect
the
local
industry from the global competition as it is essential for the health of the economy.