You cannot have it both ways. You cant claim that a massive bureaucracy and large amounts of wires-crossed government intervention in agricultural markets is necessary to keep the prices of essential commodities low while simultaneously sitting back and announcing mournfully that the price of an essential commodity is going to rise,and theres little that can be done about it. But the essential hopelessness and muddle of Indias approach to such products was on display yesterday when Agriculture Minister Sharad Pawar practically announced that,after sugar,pulses and vegetables,it was time for milk to start straining household budgets across the country.
True,as Pawar pointed out,milk is a state subject. But he did not seem to register that that is actually an excellent reason why the Union agriculture ministry should not appear to be standing up and taking responsibility for the prices going up. The ministry,in any case,has shown through its responses to not have a reformist bone in its body: Pawar is,no doubt,partly miffed because the Cabinet,when it met to discuss prices recently,did not decide to ban the export of milk products in order to try and ineffectually shove up domestic price.
There are reasons why milk production has not been particularly good this year. But supply-side constraints of this sort,in a genuinely open and reformed economy,wouldnt be a problem. Everywhere else in the world there is a milk glut. Indeed,online futures prices have fallen by over a half of their original level since July last year. But,here in India,we dont benefit from that,and are instead girding ourselves for another man-made price increase. This might well be Sharad Pawars last major position in government. Dragging his ministry into a 21st century,reformist mindset,might just cement his legacy.