Thursday, February 5, 2015

Agriculture, again...


INDIA is a big exporter of cereals... a big part is going out of the country and prices can go down if we reverse the situation... if everybody else's expenditure on food will go down other prices will follow... food inflation in cereals was always high... but does this price reach the poor farmers pocket... grains are bought at an earlier date and is sold (by the government) after months... Prices go up every month, but this gain does not reach to the farmers... our poor farmers are not very speculative... beside big fishes... those who have control-over storage and release of food grains to the markets... i do not think the farmers have all the control to market his produce... the difference between the farmers price, the storage price, the whole sale market-price and the retailers price... with-out much value-addition... only increasing the market cost... The GoI should help farmer store without cost and sell to the whole-sale market when he thinks prices are right to run the cost and earn profits, not the middle-man... Our 60% of population live in villages and dependent on agriculture for a living... The middle-man chain has depressed agricultural income... The profits are not reaching the farmers and also cost the GoI subsidies and MSP determination... All these have made agricultural unattractive to other professions... Land is most scarce... for housing too... agriculturalists low income is against demand and growth... Everybody else’s income is increasing faster...   

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