Saturday, June 8, 2013

Foodgrains stock, starvation and fate of the economy



The article is very informative and a very good food for thought and serious action. The economy suffers in several ways for lack of imaginative thinking, planning and result oriented action. The food credit estimated at between Rs 70000 and Rs90000 crores is nothing but a Non performing Asset of highest order which the economy cannot and should not bear. If these NPAs are added to the other NPAs of  banks the amount would be staggering and  it would not  be an exaggeration to say that the amount would be sufficient to wipe out the entire fiscal deficit. Further, if these npas are made to perform, the economy will shine and the ills of the economy will vanish. The waste of food grains lying accumulated is neither justifiable nor tolerable when many a people in the country are starving. The Govt should either have an efficient distribution system without leakage and corruption  or export the food grains  at the optimum price possible and introduce cash transfer or Coupon system to the poorest of the poor. Govt can involve some social workers or NGOs or SHGs or Banking Correspondents to carry out the distribution of grains or cash with proper checks and balances to eliminate corruption. The country has the best of talents and good human beings who care for the welfare of the poor and the economy. Leaving every thing  only to bureaucrats and politicians will only add  to the woes of the economy and the problems of plenty of food grains vs starvation, fiscal deficit, current account deficit, staggering NPAs with adverse consequences will remain for ever for politicians to exploit the situation in their own way.

Dr.T.V.Gopalakrishnan

(This is in response to an article How to reduce our rotting mountains of grain appeared in ET and Times of India dated 9/6/11)


  

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