On August 15, 2014 the prime minister had announced government’s intent to trifurcate Food Corporation of India (FCI) in to three entities each devoted to procurement, handling and distribution. Being a cosmetic exercise and far from making a dent on maladies afflicting the sector, the announcement failed to enthuse analysts. In a (pleasant) surprise turn of events, a committee constituted up under chairmanship of Mr Shanta Kumar – a senior leader of BJP and ex-minister in the NDA government under Vajpayee – has come up with recommendations which are out-of-the-box and hold a promise of bringing about a ‘paradigm shift’ in India’s food economy. It recommends:- (i) drastic curtailment in the role of the state/government in addressing food needs...
More
No comments
Category: Agriculture & Foodgrain
Unleashing reforms in food sector
Prime Minister, Modi has directed the food ministry to take a look at the recommendations of the Shanta Kumar committee on restructuring and re-orientation of food procurement, handling and distribution system and prepare action points for consideration by the cabinet committee on economic affairs (CCEA). The committee was set up in the back drop of Modi’s statement in his Independence Day address on August 15, 2014 that his government was considering to trifurcate the operations of monolith Food Corporation of India (FCI) in to three distinct entities each focusing on procurement, handling and distribution with a view to improve efficiency and reduce cost. This had left an impression that the existing dispensation of government buying ‘unlimited’ quantities of food from farmers...
More
No comments
Lift the veil on subsidies
In his maiden budget for 2014-15 presented on July 10, 2014, finance minister, Arun Jaitely had announced setting up of an expenditure management commission (EMC) to recommend a road- map up for rationalizing and phasing out major subsidies. As a follow up, on September 4, the government constituted the EMC under chairmanship of Dr Bimal Jalan. The commission’s mandate puts under scanner government’s spending on all its programmes and schemes, procurement from defence to office items besides the methodology for counting receipts and expenditure. It is expected to recommend measures for utilization of allocated funds in the most cost effective manner. While addressing the just concluded ET Global Business Summit, Jaitely informed that the recommendations of the commission made in...
More
No comments
Time to say ‘good bye’ to subsidies
One of the planks on which Modi got mandate to govern was his promise to deliver on fiscal consolidation. In its maiden budget for 2014-15, government has pledged to achieve this by pruning subsidies and higher tax revenue based on lower rates. Recently, prime minister approved constitution of an expenditure management commission (EMC) under chairmanship of Dr Bimal Jalan former governor RBI to recommend a road-map up for rationalizing and phasing out major subsidies viz., food, fertilizers and oil. The commission has been asked to submit its report within 18 months. However, it will submit an interim report in 6 months. The protracted time frame for the committee should not be taken to mean any dilution of government’s commitment on this crucial reform....
More
No comments
Food, fertilizers and fuel – need ‘overhaul’, not just re-routing of subsidy
In its maiden budget presented on July 10, 2014, NDA-government has announced setting up of an expenditure reforms commission (ERC) that will examine all subsidies viz., food, fuel, fertilizers and come up with a road map for restructuring them. Further castigating existing dispensation as one that does not target beneficiaries (read poor) and leads to ever rising ‘un-quantifiable’ subsidies, it has promised to switch over to a scheme of direct cash transfer (DCT) to poor in a focused and transparent manner. Since then, it is close to a month and ERC has not been constituted as yet. At this pace, we can’t expect its recommendations before end of current year. Therefore, any major restructuring may have to wait at least...
More
No comments
Prune subsidies vide censoring producers
Contrary to expectation, there was no big bang reform in regard to subsidies in Modi-government’s maiden budget presented on July 10, 2014. However, Arun Jaitley announced setting up of an expenditure reforms commission (ERC). While, we may have to wait for ERC recommendations until next budget in February, 2015, meanwhile Jaitley has given some ideas on direction in which government intends to move forward. Thus, he opines that extant dispensation of subsidies which he describes as ‘un-quantifiable’ and beneficiaries ‘un-identifiable’ cannot be allowed to continue. He emphasized need for replacing this by a system of direct subsidy transfer to poor. To countenance menace of subsidies, Jaitely alluded to fundamental need for consumers/users to pay for increase in cost of goods...
More
No comments
Scrap the Food Security Act
It’s a colossal dole that will impact production and push up prices without improving the condition of the hungry The Indian electorate has given an overwhelming mandate to the Narendra Modi-led National Democratic Alliance (NDA) hoping it will deliver development and good governance. The Congress-led UPA has been routed. This shows the people have rejected its hollow promises of access to the essentials of life as a matter of right. All through his election campaign, Congress vice-president Rahul Gandhi made a song and dance about a list of fundamental rights granted to people under the UPA dispensation. Among these, he talked loudest of the right to food to demonstrate that his party was sensitive to the livelihood concerns of the...
More
No comments
Food Security – need for a paradigm shift
Indian electorate has given an overwhelming mandate to Narendra Modi led NDA to conduct affairs of nation on plank of development and good governance. Congress led UPA has been routed. People have rejected its hollow promises of access to quint-essentials of life as a matter of right. All through his election campaign, Rahul Gandhi (RG) brow beated about a volley of fundamental rights granted to people under UPA dispensation. He talked loudest about right to food to demonstrate that his party was sensitive to livelihood concerns of poor. India has been ruled by Congress for over six decades. Through most of this period, it has consistently proclaimed its commitment to ameliorating lot of poor. It milched ‘Garibi Hatao’ slogan to...
More
No comments
Can agriculture absorb ‘jobless’ from outside?
Mocking at the UPA much touted agenda of so called ‘inclusive’ development, in recent years, there has been shrinkage in employment in the non-agriculture sector and prospects for the future are not encouraging either. Agriculture any way has received a huge drubbing during the last decade of UPA regime. During 2004-05 to 2011-12, there was an unprecedented reduction in the labour force employed in agriculture from 268 million to 231 million i.e. a decline of 37 million. This was largely due to a rapid GDP growth of 8.3% per annum – mostly led by growth in services especially construction. The increase in employment outside agriculture during this period was 52 million (50% of this addition was in construction sector alone)...
More
No comments
Cause for indigestion
During the debate on the Food Security Bill (FSB) in the Lok Sabha on August 26, 2013, Congress president Sonia Gandhi observed “it is time to send out a big message that India can take the responsibility of ensuring food security of all Indians”. She added, “the question is not whether we have the resources to implement the food Bill; we have to mobilise resources anyhow”. She also acknowledged leakages in the PDS and asked the states to strengthen it. Gandhi’s observation would appeal to almost all Indians with the promise of subsidised access to food in ‘adequate’ quantities (though 5 kg a month per person is hotly contested) to all. Thus, even those with the lowest income imaginable would...
More
No comments