Welcome

Website counter
website hit counter
website hit counters

Wednesday, November 9, 2011

The disturbing truth about rising food prices

The disturbing truth about rising food prices

nilotpal basu

There is a complete disconnect between soaring prices and the government's response. the most common refrain of governments past and present has been to attribute the incidence of extremely steep price situation, particularly of those commodities regarded as essential, to the global pattern. however, a cursory look at the global food price situation would reveal that india compares very adversely as compared to most other countries. the primary reason is that the world today is in the grip of a much deeper recession than us.
the government also has tried to gloss over the reality and tried to argue a demand-supply mismatch to trivialise the problem. of course, they have also tried another round of similar assurance that by the yearend, prices would come under control. the repeated nature of such unfounded promises is adding up to the common man's sense of irritation and disgust. 
more importantly, this supply-demand mismatch further falsifies the ground reality. our farmers are expressing themselves with great anguish over the crashing prices that their produce is fetching in the mandis. standing and harvested crops are being set on fire. farmers in different parts of the country say they will not sow the kharif crop. and one cannot blame them for these expressions of despair. their crop is not reaching prices that would actually cover their costs. with the sharp rise in fertilizer prices, costs have gone up so much and it is actually rendering losses with the kind of prices they are commanding in the market. therefore, far from what the government claims, the reality is that the primary producers are not being able to sell their produce. so if there is a glut in supply, it is not because of a glut in production but because of want of an appropriate mechanism that can fetch a fair price and at the same time, increase the flow of supply. the absence of such a mechanism is leading to a situation where the current level of un-viability of petty agricultural production may lead to a major reduction in the farming activity in the coming kharif season. 
the absence of the appropriate mechanism is actually not a chance incidence. the withdrawal of appropriate public agency intervention in procurement and credit delivery is leading to the inroads of private lenders and big time players in the agricultural commodity market. the reduction of public stocks and stocks coming increasingly under big private players' control is correspondingly increasing speculative activity. the government's refusal to disallow forward and future trading in the agricultural commodity market is amplifying the impact of speculation in the rising food prices. this is at the cost of both the primary producers and the urban consumers.

however, two other factors adversely affecting the food price situation show that the government is directly responsible for the present state of affairs. its refusal to revamp the public distribution system — and going in the reverse direction to completely dismantle that — is leading to an unprecedented level of exclusion of poor people from accessing food at affordable prices. this is done by trying to artificially manipulate the number of poor and continue with the targeted system, which is absolutely falsifying the prevailing reality. on the other hand, allowing the free play of big private players in the countryside also allows only the relatively bigger players to hold on to their produce and not indulge in distress sale. this is pushing the smaller and marginal peasantry into a state of complete helplessness apart from excluding a large section of poor from affordable food.

the other question is the impact of the increase in fuel price. in the last 12 months, there have been 11 fuel price hikes. the government tried to explain this as a consequence of increase in international crude oil prices. that this is a sham is now increasingly clear because the latest hike has nothing to do with international prices. in fact, international prices are actually lower now. a major component of the increased price is being actually collected by the government as taxes. at a point in time when taxes on corporates are waived and direct taxes are reduced, why should the government increase indirect taxes including those on petro products to raise its revenue? 
a cursory look at the balance sheets of public sector oil companies will reveal that year after year, they are making huge profits and passing them on to the government in the form of tax and dividends. an rti query will reveal that even the subsidy that the government is claiming to give the oil marketing companies is actually far less than the overall revenue that it collects on account of tax and dividends from the sector as a whole and the oil companies as well.
together with the fuel prices, the abnormal rise in fertilizer prices are also linked to the benchmarking of this important input to the international crude oil prices. therefore, it is clear that the horrific price situation is a direct outcome of the pricing and the taxation policy of the government in the hydrocarbon sector. 
the high prices are benefiting the government — increased tax revenue — the big private players in petroleum and agriculture and the burden is brought upon the majority of the people, most of whom are poor. the poor whose expenditure basket is disproportionately burdened because of food being the most major item, they are at a point of explosion.

the writer is a member of the central committee, cpi(m)
linbox@dnaindia.net
Full Story can be found at http://epaper.dnaindia.com/epapermain.aspx?edorsup=Main&queryed=9&querypage=11&boxid=33999386&parentid=153941&eddate=11/09/2011 

No comments:

मैं नास्तिक क्यों हूं# Necessity of Atheism#!Genetics Bharat Teertha

হে মোর চিত্ত, Prey for Humanity!

मनुस्मृति नस्ली राजकाज राजनीति में OBC Trump Card और जयभीम कामरेड

Gorkhaland again?আত্মঘাতী বাঙালি আবার বিভাজন বিপর্যয়ের মুখোমুখি!

हिंदुत्व की राजनीति का मुकाबला हिंदुत्व की राजनीति से नहीं किया जा सकता।

In conversation with Palash Biswas

Palash Biswas On Unique Identity No1.mpg

Save the Universities!

RSS might replace Gandhi with Ambedkar on currency notes!

जैसे जर्मनी में सिर्फ हिटलर को बोलने की आजादी थी,आज सिर्फ मंकी बातों की आजादी है।

#BEEFGATEঅন্ধকার বৃত্তান্তঃ হত্যার রাজনীতি

अलविदा पत्रकारिता,अब कोई प्रतिक्रिया नहीं! पलाश विश्वास

ভালোবাসার মুখ,প্রতিবাদের মুখ মন্দাক্রান্তার পাশে আছি,যে মেয়েটি আজও লিখতে পারছেঃ আমাক ধর্ষণ করবে?

Palash Biswas on BAMCEF UNIFICATION!

THE HIMALAYAN TALK: PALASH BISWAS ON NEPALI SENTIMENT, GORKHALAND, KUMAON AND GARHWAL ETC.and BAMCEF UNIFICATION! Published on Mar 19, 2013 The Himalayan Voice Cambridge, Massachusetts United States of America

BAMCEF UNIFICATION CONFERENCE 7

Published on 10 Mar 2013 ALL INDIA BAMCEF UNIFICATION CONFERENCE HELD AT Dr.B. R. AMBEDKAR BHAVAN,DADAR,MUMBAI ON 2ND AND 3RD MARCH 2013. Mr.PALASH BISWAS (JOURNALIST -KOLKATA) DELIVERING HER SPEECH. http://www.youtube.com/watch?v=oLL-n6MrcoM http://youtu.be/oLL-n6MrcoM

Imminent Massive earthquake in the Himalayas

Palash Biswas on Citizenship Amendment Act

Mr. PALASH BISWAS DELIVERING SPEECH AT BAMCEF PROGRAM AT NAGPUR ON 17 & 18 SEPTEMBER 2003 Sub:- CITIZENSHIP AMENDMENT ACT 2003 http://youtu.be/zGDfsLzxTXo

Tweet Please

Related Posts Plugin for WordPress, Blogger...

THE HIMALAYAN TALK: PALASH BISWAS BLASTS INDIANS THAT CLAIM BUDDHA WAS BORN IN INDIA

THE HIMALAYAN TALK: INDIAN GOVERNMENT FOOD SECURITY PROGRAM RISKIER

http://youtu.be/NrcmNEjaN8c The government of India has announced food security program ahead of elections in 2014. We discussed the issue with Palash Biswas in Kolkata today. http://youtu.be/NrcmNEjaN8c Ahead of Elections, India's Cabinet Approves Food Security Program ______________________________________________________ By JIM YARDLEY http://india.blogs.nytimes.com/2013/07/04/indias-cabinet-passes-food-security-law/

THE HIMALAYAN TALK: PALASH BISWAS TALKS AGAINST CASTEIST HEGEMONY IN SOUTH ASIA

THE HIMALAYAN VOICE: PALASH BISWAS DISCUSSES RAM MANDIR

Published on 10 Apr 2013 Palash Biswas spoke to us from Kolkota and shared his views on Visho Hindu Parashid's programme from tomorrow ( April 11, 2013) to build Ram Mandir in disputed Ayodhya. http://www.youtube.com/watch?v=77cZuBunAGk

THE HIMALAYAN TALK: PALASH BISWAS LASHES OUT KATHMANDU INT'L 'MULVASI' CONFERENCE

अहिले भर्खर कोलकता भारतमा हामीले पलाश विश्वाससंग काठमाडौँमा आज भै रहेको अन्तर्राष्ट्रिय मूलवासी सम्मेलनको बारेमा कुराकानी गर्यौ । उहाले भन्नु भयो सो सम्मेलन 'नेपालको आदिवासी जनजातिहरुको आन्दोलनलाई कम्जोर बनाउने षडयन्त्र हो।' http://youtu.be/j8GXlmSBbbk

THE HIMALAYAN DISASTER: TRANSNATIONAL DISASTER MANAGEMENT MECHANISM A MUST

We talked with Palash Biswas, an editor for Indian Express in Kolkata today also. He urged that there must a transnational disaster management mechanism to avert such scale disaster in the Himalayas. http://youtu.be/7IzWUpRECJM

THE HIMALAYAN TALK: PALASH BISWAS CRITICAL OF BAMCEF LEADERSHIP

[Palash Biswas, one of the BAMCEF leaders and editors for Indian Express spoke to us from Kolkata today and criticized BAMCEF leadership in New Delhi, which according to him, is messing up with Nepalese indigenous peoples also. He also flayed MP Jay Narayan Prasad Nishad, who recently offered a Puja in his New Delhi home for Narendra Modi's victory in 2014.]

THE HIMALAYAN TALK: PALASH BISWAS CRITICIZES GOVT FOR WORLD`S BIGGEST BLACK OUT

THE HIMALAYAN TALK: PALASH BISWAS CRITICIZES GOVT FOR WORLD`S BIGGEST BLACK OUT

THE HIMALAYAN TALK: PALSH BISWAS FLAYS SOUTH ASIAN GOVERNM

Palash Biswas, lashed out those 1% people in the government in New Delhi for failure of delivery and creating hosts of problems everywhere in South Asia. http://youtu.be/lD2_V7CB2Is

THE HIMALAYAN TALK: PALASH BISWAS LASHES OUT KATHMANDU INT'L 'MULVASI' CONFERENCE

अहिले भर्खर कोलकता भारतमा हामीले पलाश विश्वाससंग काठमाडौँमा आज भै रहेको अन्तर्राष्ट्रिय मूलवासी सम्मेलनको बारेमा कुराकानी गर्यौ । उहाले भन्नु भयो सो सम्मेलन 'नेपालको आदिवासी जनजातिहरुको आन्दोलनलाई कम्जोर बनाउने षडयन्त्र हो।' http://youtu.be/j8GXlmSBbbk