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न्यूज क्लिपिंग्स् | Farming must modernise

Farming must modernise

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published Published on Nov 28, 2009   modified Modified on Nov 28, 2009

Food prices are rising at a rate that neither consumers nor politicians can afford. On this, there is consensus. But on the more substantive question as to what should be done about it, there is more silence than disagreement. The Opposition wants to blame the government, the government wants to shift the blame to the states. But ultimately, there is only so much that food management can do when there is a shortage of food.

The Economist’s index of food prices is up 18.3% over the last 12 months, showing that the problem is not just local. Growing prosperity and the accompanying rise in demand for more food, both directly and as inputs to higher-value foods such as eggs, milk and meat, are pushing up prices. Higher prices do act as an incentive for farmers to produce more, but for that response to feed through to higher output, demand and supply must interact in a functional market mechanism.

Both absent or sparse infrastructure and misguided regulation pre-empt the coming into being of a functional market for farm produce. Therefore, it is as important for the government to step up investment in rural roads, spot and future commodity markets, rural electrification and rural telecom and broadband access as it is for it to invest in irrigation, farm technology and its extension.

The debate in Parliament on the subject raised much heat, but shed little light. Some opposition members blamed farming becoming part of international trade for the present scarcity of food. They forget that since the reform process began, the terms of trade between industry and agriculture, which had been skewed heavily in favour of industry, have moved decisively in agriculture’s favour.

And they can improve further, with an intelligent approach to subsidy, farm size, and movement and storage of farm produce. Politicians oppose organised retail, but the fact remains that organised retail can step in to supply the climate-controlled storage that vegetables require, to prevent farm prices crashing and consumer prices spiking. Integrating farming in a functional market, with intelligent state support, is the way to grow more food and stop wage inflation.

 

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