Food security will bring
farmers’ insecurity
Poor people
need nutritional security through enhanced purchasing power
By Manohar Manoj
The food security bill which came first in form of ordinance shows how much anxious this UPA goverbnebt is to grab the votes through this politically designed and popularly packaged scheme. But before implanting and implementing this scheme, the UPA has to immediately and quickly reply to the nation on five fronts. 1. UPA has to reply, does this scheme not spoil the whole agronomy and the livelihood of around 16 crores farmers of the country 2. UPA has to reply, the country, which is already facing a severe fiscal crisis, the fiscal deficit is above 5 percent of GDP and government is cutting almost all subsidies, even it has withdrawn subsidy on LPG which has almost no alternative in the open market, how this government will bear Rs. 1,20,000 crore worth of subsidies and where it will come from 3. UPA has to reply what happened of all poverty alleviation schemes initiated in last 65 years in the country. Have they all become prey to the corruption, mismanagement and policy paralysis. 4.UPA has to reply, after all what happened of big sounded scheme of MNREGA, was it not able to raise the purchasing power of the poor of the country. and 5. when govt. has already said that most of the subsidies and relief would be provided directly to the poor people through direct cash transfer scheme, then why government planned to carry huge population of 80 crore under corrupt PDS system in order to sell cheaper wheat and rice, the allegation which was ratified by none other than finance minister of UPA,that the PDS system of the country is heavily ridden with corruption
This is fact, the PDS system of the country has perennial history of corruption in procurement, transportation, storage and distribution, now these all will get more stimulus of corruption.
But leaving all these issues aside, this UPA govt. has become so anxious of grabbing votes that it has forgotten every thing. This UPA-2 thinks same as UPA-1 which brought farmers' loan waiver and MNREGA kind of schemes, which ensured UPA's victory in 2009 elections. In the same way UPA-2 thinks through food security scheme, it will able to consolidate its voters and ensure victory in the elections, because populist economic decisions have had always vote catching tendency in the past .
But the political managers of UPA-2 must assess this fact that UPA-1 had a more favorable economic circumstance, fiscal deficit and current account deficit were in a comfortable position, so the gamble played by UPA at time resulted in terms of political gains to them. The present economic condition is not allowing them, but for the sake of vote, they are ready to do all these things.
The irony is that our political regime never says the schemes, which they draft has any political connotation; they all term their scheme meant for the sake of people of country. But in reality, they all are politically packaged without considering its economic viability, it's economic and social outcome and foremost it's leakage free implementation.
Govt. should this question, how a PDS dealer sell wheat on just commission of 30 paisa per KG , when he gives bribe of 1 rupee per KG to the officia of food dept. l, he spend more than 30 paisa per kg on its transportation from warehouse to his PDS shop.I have witnessed many PDS dealers who purchase numbers of acre of land ever year through their dealership income. How is it possible? They sell PDS items in open market, by changing the quality and quantity of PDS items.
The poor who want to make their PDS card which are of various kind, like red card, green card, blue card etc, in fact they are not able to make them easily. There is to be A long queue as well as rampant bribery prevails there. Many times people hire brokers to make their card. So, people have to face many difficulties while availing rationed food from the PDS shops. It has been mostly seen in urban area, even to big extent in rural area, when people purchase their consumption items particularly the food items in spot market. They do not want to wait, so they rushed to nearby grocery shops. In this circumstance, if UPA really thinks that this food security scheme would provide people food security as well as inflation relief, then it has only one better option left. Either go for nationalising the whole agriculture activities and food distribution or fully withdraw subsidies from the both agriculture input and food distribution and make the agriculture, a profession of profit or give it the status of industry.
If govt. is realy interested in alleviating poverty, it should ensure 4 things, 1. provide employment opportunities for all category of laborers skilled, semi skilled, unskilled and professionals through infrastructure development programs, not through non asset creating MNREGA kind of schemes or if in case it is not able to provide employment, then government can make a provision of employment dole, 2. govt. should provide full social security measures to the all vulnerable section of society (comprised of aged, widow and widower, handicap persons) 3. spend heavily on human development provision like education and health through asset creation as well as cash transfer on item like uniform, bicycle and food pocket and 4 To link all wages and salaries of informal and unorganized to the price index. These are the measures, which will automatically provide purchasing power to the poor and it will enable them to purchase food and non food article both.
It is attentionable here, the govt. which is terming this scheme as food security, in fact it is food grain security, it is not food nutritional security.
Even food grain security at the cost of huge tax money collected from the people., is not a food security, because a PDS shop can never provide quality food grain. Then, what will be of Aamir Khan's advt. 'kuposhan Bharat chhorho', Until unless govt. will provide items like milk, curd, egg, meat, vegetables, pulses and sufficient edible oil to the poor people, how the malnutrition affected people will come out of it. But, the UPA govt. is not doing that, but the matter is, it is also not possible to provide, as I told earlier that people want to purchase food items on spot market, they need only purchasing power, if govt. able to establish chain like safal or mother dairy shops throughout the rural India, then this kind of schemes can be availed to the people. As it was earlier seen in case of edible oil and onion when it became costlier, NCT Govt. of Delhi started to sell it through mother dairy and safal shops in order to provide price relief to the consumers. But no governments can do it ever. So the only practical option left that is to ensure it through the market otherwise nexus between corruption and subsidy will remain continue.
So, the crux point is that the intention of this govt. is very bad and it is desperate to grab the votes. But voters will have to understand, the controlled shop will never provide them choice of consumption and opportunities for the better life. And the way government is trying to manage these things, its immediate effect will come in two ways, first it will have huge inflationary pressure over the economy, which govt. already witnessed during 2008, when the scheme like MNREGA and loan waiver brought up fiscal deficit from 4 percent to 6 percent and it resultantly inflation rate crossed 19 percent mark. So this time, same things likely to happen, rather the farmers’ plight will emerge in new way.
The food security scheme will definitely bring down the open market rate of wheat and rice. There is two reason of this. first one who will take cheaper food grains, they will not purchase in the market, so demand would be lesser against the available supply, Second the rationed food items may be sold in the open market in order to get higher market price, it consequently supply will surpass the demand of food grains, So in both cases prices of rice and wheat will be less in the open market. These circumstances will deter the farmers, because whenever they need cash money, they sell their stored food stuffs in the open market , but under this circumstances, they will not have betteer prices of their produces. It will compel farmers to make suicide and self immolation. At last Farmers would like to become a wage laborer rather than farmer. In so many ways, this government is doing blunder by bringing this food security scheme.
At last I would like to say that food security schemes should be continued, but only in those areas, where natural calamities have come or likely to come. It should be made operational in remote area, tribal area where market has no access. p
This is fact, the PDS system of the country has perennial history of corruption in procurement, transportation, storage and distribution, now these all will get more stimulus of corruption.
But leaving all these issues aside, this UPA govt. has become so anxious of grabbing votes that it has forgotten every thing. This UPA-2 thinks same as UPA-1 which brought farmers' loan waiver and MNREGA kind of schemes, which ensured UPA's victory in 2009 elections. In the same way UPA-2 thinks through food security scheme, it will able to consolidate its voters and ensure victory in the elections, because populist economic decisions have had always vote catching tendency in the past .
But the political managers of UPA-2 must assess this fact that UPA-1 had a more favorable economic circumstance, fiscal deficit and current account deficit were in a comfortable position, so the gamble played by UPA at time resulted in terms of political gains to them. The present economic condition is not allowing them, but for the sake of vote, they are ready to do all these things.
The irony is that our political regime never says the schemes, which they draft has any political connotation; they all term their scheme meant for the sake of people of country. But in reality, they all are politically packaged without considering its economic viability, it's economic and social outcome and foremost it's leakage free implementation.
Govt. should this question, how a PDS dealer sell wheat on just commission of 30 paisa per KG , when he gives bribe of 1 rupee per KG to the officia of food dept. l, he spend more than 30 paisa per kg on its transportation from warehouse to his PDS shop.I have witnessed many PDS dealers who purchase numbers of acre of land ever year through their dealership income. How is it possible? They sell PDS items in open market, by changing the quality and quantity of PDS items.
The poor who want to make their PDS card which are of various kind, like red card, green card, blue card etc, in fact they are not able to make them easily. There is to be A long queue as well as rampant bribery prevails there. Many times people hire brokers to make their card. So, people have to face many difficulties while availing rationed food from the PDS shops. It has been mostly seen in urban area, even to big extent in rural area, when people purchase their consumption items particularly the food items in spot market. They do not want to wait, so they rushed to nearby grocery shops. In this circumstance, if UPA really thinks that this food security scheme would provide people food security as well as inflation relief, then it has only one better option left. Either go for nationalising the whole agriculture activities and food distribution or fully withdraw subsidies from the both agriculture input and food distribution and make the agriculture, a profession of profit or give it the status of industry.
If govt. is realy interested in alleviating poverty, it should ensure 4 things, 1. provide employment opportunities for all category of laborers skilled, semi skilled, unskilled and professionals through infrastructure development programs, not through non asset creating MNREGA kind of schemes or if in case it is not able to provide employment, then government can make a provision of employment dole, 2. govt. should provide full social security measures to the all vulnerable section of society (comprised of aged, widow and widower, handicap persons) 3. spend heavily on human development provision like education and health through asset creation as well as cash transfer on item like uniform, bicycle and food pocket and 4 To link all wages and salaries of informal and unorganized to the price index. These are the measures, which will automatically provide purchasing power to the poor and it will enable them to purchase food and non food article both.
It is attentionable here, the govt. which is terming this scheme as food security, in fact it is food grain security, it is not food nutritional security.
Even food grain security at the cost of huge tax money collected from the people., is not a food security, because a PDS shop can never provide quality food grain. Then, what will be of Aamir Khan's advt. 'kuposhan Bharat chhorho', Until unless govt. will provide items like milk, curd, egg, meat, vegetables, pulses and sufficient edible oil to the poor people, how the malnutrition affected people will come out of it. But, the UPA govt. is not doing that, but the matter is, it is also not possible to provide, as I told earlier that people want to purchase food items on spot market, they need only purchasing power, if govt. able to establish chain like safal or mother dairy shops throughout the rural India, then this kind of schemes can be availed to the people. As it was earlier seen in case of edible oil and onion when it became costlier, NCT Govt. of Delhi started to sell it through mother dairy and safal shops in order to provide price relief to the consumers. But no governments can do it ever. So the only practical option left that is to ensure it through the market otherwise nexus between corruption and subsidy will remain continue.
So, the crux point is that the intention of this govt. is very bad and it is desperate to grab the votes. But voters will have to understand, the controlled shop will never provide them choice of consumption and opportunities for the better life. And the way government is trying to manage these things, its immediate effect will come in two ways, first it will have huge inflationary pressure over the economy, which govt. already witnessed during 2008, when the scheme like MNREGA and loan waiver brought up fiscal deficit from 4 percent to 6 percent and it resultantly inflation rate crossed 19 percent mark. So this time, same things likely to happen, rather the farmers’ plight will emerge in new way.
The food security scheme will definitely bring down the open market rate of wheat and rice. There is two reason of this. first one who will take cheaper food grains, they will not purchase in the market, so demand would be lesser against the available supply, Second the rationed food items may be sold in the open market in order to get higher market price, it consequently supply will surpass the demand of food grains, So in both cases prices of rice and wheat will be less in the open market. These circumstances will deter the farmers, because whenever they need cash money, they sell their stored food stuffs in the open market , but under this circumstances, they will not have betteer prices of their produces. It will compel farmers to make suicide and self immolation. At last Farmers would like to become a wage laborer rather than farmer. In so many ways, this government is doing blunder by bringing this food security scheme.
At last I would like to say that food security schemes should be continued, but only in those areas, where natural calamities have come or likely to come. It should be made operational in remote area, tribal area where market has no access. p
Writer is the editor of Economy India
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