This is an archive article published on January 28, 2016
Premium

Ghosts Of Ship-To-Mouth

Price spikes, production fluctuations challenge us, not insufficient food production

Written by: Ajay Vir Jakhar
4 min readJan 28, 2016 12:00 AM IST First published on: Jan 28, 2016 at 12:00 AM IST

Having inherited an unsustainable farm economy, made worse by bad monsoons and low international commodity prices, the government is struggling to show progress in the face of farmer suicides. To its credit, the government is consulting farmers for the preparation of a budget that not only addresses their concerns but also appears to do so.

In the recent pre-budget consultations on agriculture attended by the finance minister, the head of a multinational commodity trading house suggested that “international commodity prices are low and so it is time to import food to build stocks for food security”. I was aghast not just by his statement but also at his presence at the meeting. A desperate commodity firm looking for foolish nations to accept subsidised food for which there are no buyers today. Cheap imports artificially drive down commodity prices, leading farmers into a cycle of perpetual poverty and, as a result, rural-urban migrations.

Latest Comment
Post Comment
Read Comments