How should Govt handle the impending food crisis?

[ajay_ijn]

food prices are already on rise and with much less than expected rainfall and fall in production, food prices will rise further.

How do you think govt should handle this? what factors other than rainfall are effecting these prices? what are the solutions?

 

[Yusuf]

Imports. Remove duties on food imports. Large imports will make sure there is adequate supply and so that the price doesn't increase due to percieved shortage.
Come down heavily on any hoarding.

Need more research in the agriculture so that we can introduce grains that can grow despite any shortage of water.

 

[S.A.T.A]

Its funny that we are talking about rising food prices when our inflation figures are at an all time historic low.

While i personally wouldn't describe it a crisis yet(considering that monsoon rains have lashed several parts of the country after delayed arrival),but this should be reminder that the govt should stop passing the buck anymore and realize the gravity of the situation,now and for the future.

We must have realized by now that despite our best efforts,or in certain circumstances inspite of it,The Global weather patterns are and will continue to be erratic,major global weather systems like Monsoon will remain relatively stable,but largely unpredictable as the years go.We cannot hope to change the trans-national crop sowing/harvesting pattern(which is currently two agricultural seasons)unless we have better weather forecasting techniques than the ones that has served us well for centuries.

The govt seriously needs to think on long term basis,depending on the monsoons for feeding a growing population is unfeasible.Our best option lies on expanding our current irrigation network,this will require actively pursuing projects commissioning of transnational irrigation Canal system capable of large volume Inter-basin water transfer.

Its going to cost a lot and take a lot of time,but hey Rome wasn't built in a day.Besides a project of this magnitude is perhaps just what the doctor would order for a economy under recession.

 

[IBM]

There is lot of food grians avalable in our country. Unfortunately those food grains either lying in govt storage or ports around country. I my self saw several govt stores filled with grains in Punjab. They r lying to rot but not been distributed. Thanks to corrupt leaders,civil servants......when we will change.??????. Recently i have seen in news several lakh tons of dal lying in Kolkotta port and rotting for last 6 months. Several millions dolars has been wasted to import that dal and that also not been distributed to the people. Thanks to customs and food minister ohhhhh :noo1::noo1::noo1::noo1: I forgot our food minister is MR SHARAD PAWAR who is another corrupt leader loooting our grains and also funds of BCCI. I think he should look after one job not both.

 

[thakur_ritesh]

Ajay,

if you recall, aruni was pointing to this possible problem as an out come of restrictions on food export last year, which discourages the farmer from sowing crops that do not yield them enough profits, and restrictions in exports of products heavily effects such profits, and since the farmers move to other crops the effected crops see a shortage in supply and there is price rise. Minister and his bureaucracy need to have a forth sight of how they plan things and should avoid blanket bans, something I am sure they will do again this time round.

A section of farmers are moving to a different set of produce which is more exotic in nature, less consumed in India and is more export oriented, which gets them a better bargain, as a result the produce of more consumed food items in india is not growing as much as it should.

As pointed out by IBM, our distribution system is pathetic to say the least, and if the figure of 40% of agri produce going as a rot is anything to go by then we have a solution to the problem. less than adequate shortage points, storage points which are there have very poor facilities, very poor supply chain, extremely poor planning on part of fci, poor road/rail infrastructure all effect the price.

Such an important point raised by SATA on irrigation. We need to be head strong on certain aspects and our irrigation policy is one such. Dams at large scale have to be made to create huge water storage points. Rivers need to be connected and we need to give a damn to what the international community or our adjoining neighbours say. These are very important parts of second green revolution in the country but I guess now that there is no reference to the second green revolution so these very important proposals seem buried.

Make sure agriculture land is not used for industrial, real estate or other such activity other than for agriculture purpose only.

Trading in commodities makes a hell of a difference at the price at which we consume things. Just create hype and make the market nervous on a shortfall and see how the market helps you earn your next rupee if you are a part of the daily trading community. More like how the price of oil got speculated to $147/barrel. Government needs to keep a close eye on how the prices are being speculated.

The above point leads to hoarding and I am sure it is happening. Government needs to make raids at such storage points and culprits need to be punished, put a fear in the mind of the culprits and a lot of supply would start happening.

 

[pyromaniac]

A important factor to analyze when you talk about huge price jumps is Inflation..India has a very high inflation rate..too much demand but not enough supply. Something must be done soon

 

[IBM]

A important factor to analyze when you talk about huge price jumps is Inflation..India has a very high inflation rate..too much demand but not enough supply. Something must be done soon

If Iam not wrong India's inflation rate is less than 1%. Probelm is not more demandand less supply. In my previous article i have mentioned probelm is illiegal hoarding of food grains..not inflation.......