Good-food import is good...

If we reduce the middle-man chain in the supply of food-grains farmers will get higher prices... It will incentivize farming... INDIA still has to transform agriculture in to a technology-intensive sector to increase productivity, output... Liberalising the FDI in the food-supply-chain-management will help increase investment in agriculture... while domestic investors are reluctant and slow... Without significant investment to raise farm output our industry will face higher cost of capital...  Agriculture (food) is very crucial for economic expansion from the view-point of inflation, interest-rate and human-capital...  When we talk about supply-side constraints in INDIA food is a major point, besides infrastructure...  The government should not shy away from importing good food to keep prices in check... The whole argument between the Center and the RBI is about interest-rates and food prices are the reason for high rates... The government has set aside Rs 500 Crores as price stabilization funds which should, as sounds, be used to tame prices, but no doubt we will need foreign reserves for imports... The fund will help improve supply within the economy but, again, it will stress our current account deficit that stands low relative to inflation and high interest-rate as a problem... Foreign trade should be used to increase internal demand and growth... It is an opportunity...  Controlling CAD at the cost of domestic consumption, prices and interest rate seems too hawkish...