There is an ongoing debate about whether governments should subsidize organic food industry for achieving reasonable prices or they ought to impose taxes on junk food, as the consumers will move to healthier sources. While both approaches contribute to obtain more affordable rates for the healthy food, I mostly believe state aid will excel the tax policy.
On the one hand, I understand those who are of the view that tax is an effective method for policymakers to achieve the main goals. The more taxable industries are less attractive for business owners, since they are gaining less profits. For instance, in case of imposing taxes on unhealthy food industries, shareholders are predicted to focus more on fruits and vegetables which will increase the production rates. As a result, the high output numbers will enable organic food market more achievable for the consumers.
On the other hand, I firmly agree with the people who support that state aid is crucial for making healthy food industries more affordable. Firstly, subsidizing certain markets always attracts both new and current investors. For instance, several governments establish various types of agencies to finance agricultural industries or projects. Secondly, granting state aid to natural food businesses will not only affect the market prices, the benefits will also be shown on the job market, as giving subsidies to food market will result on opening new work places, especially in countryside.
To sum up, although there are strong arguments on taxing junk food for reaching to acquire reasonable price in food market, I think granting state aid to unprocessed food industry will be more beneficial to reach affordable rates in the relevant market.