Friday, February 12, 2010

The math behind the farmer suicides(part2)

The increase in farmer suicide has been a cause of concern in the past couple of years.In the previous post I have managed to highlight the causes of farmer suicides in India.One of the major reasons for the increase in farmer suicides is because of the inability of the farmers to cope up with the rising prices and decrease in rainfall.
Despite the economic crisis and 26/11 the U.P.A government managed to win the lok sabha elections in 2009.Most of the experts in news studios were of the opinion that the Indo-US nuclear deal helped the government to win the election with such a comfortable margin,but I strongly disagree with this view.I feel that the farm loan waiver was one the main reasons why the congress party was successful in winning more than 200 seats.However the Indo-US nuclear treaty was one of the main reasons why the congress party was successful in the urban areas.The harsh reality as of today is that the farmers in rural areas would require such stimulus packages on a regular basis to continue with the agri production,but due to such high fiscal deficit it would be difficult for the govt. to come up such similar packages.
I am not a leftist,but a leftist policy is required to prevent this problem from escalating(This is one of the main reason why naxals have been receiving support from the people in rural areas.)Stimulus must be given to the agri sector on a regular basis(say annually).proceeds from disinvestment,3G auction should be channeled in such a manner that this sector is the greatest beneficiary.A federal body should be formed,which can help to administer the funds in a proper manner.The federal body should have the freedom to decide the package to be provided for a particular region(based on the rainfall ).
Recently chief minister of Gujarat Narendra Modi recommended that the PDS should be strengthened.I strongly agree with this suggestion,but surprisingly the finance minister Mr.Pranab Mukherjee saw this as a gimmick by Modi to target the central govt. Improving the current PDS can help the people in rural areas to tackle inflation in a better way.It would be beneficial to the country if the govt. takes Modi's comments seriously.
Finally I would say that in the past decade many of the economies throughout the world have started growing at a faster pace.We are currently seeing a scenario where focus is shifting from agri to industrialization.If such a transition takes place,we have to understand that the food production should fall over a period of time(causing the food inflation to rise).In such a scenario the Indian farmer would be a great asset to the country.It would help if the politicians stop fighting on petty issues and start focusing on such issues.The focus of the govt. should be to increase the growth rate in the H.D.I rather than increasing the growth rate of the country's GDP.It would help if the media starts focusing on these issues.It would help if the NGO's stop fighting for gay rights and start fighting for the rights of the Indian farmer.Until then,Let's hope that Aatmaram does not consume that bottle of poison.

2 comments:

  1. I feel strengthning the PDS has been a common opinion by all our gr78 politicians but no one rather luked at the complexeties of corruption, the ration card holding system , PDS centres charging high then govt allocated price , the officials stocking the goods aside nd buying them 4 their purposse 4 almost free or a very low rate
    there has 2 b a strong vigilance body 4 monitoring thid PDS system which can den move on 2 ensure the inclusive gradual grwth i knw these words r more comprehensive but an overview of wat PDS can do ....

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  2. ya correct...lets hope the national id(nandan's project)helps us solve this prob.

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