Friday, January 12, 2018

Are bad agricultural loan and food subsidies killing Indian agriculture ?

Today agriculture is stock in-between the producer and consumer. Where farmer is producer and he is poor and common man is consumer and he is also poor.  If prices of wheat or any food commodity rise, then it hurts common man at another side if commodity prices falls then it hurts farmers. At one side govt is trying to curb the inflation of food product with control distribution, crube on private stocking, importing of commodities, promoting import by lowering duty, banning export and a lot of food subsidy. At another side Govt is trying to help farmers by procurement and govt, minimum support price, opening the export and putting duties on import and a lot of farm subsidy. 

Govt is expanding a lot of money on both side for making farmers and consumer both happy. Every year there is farm loan waiver and every year there is distribution of food commodity at a nominal price.

To whom we are making foolish? 

One thing is clear we can’t make both farmers and consumers happy at the same time.  But we are killing agriculture and food business at the same time. At one side Govt has keep agriculture and farmers separate and at another side govt must separate the agriculture commodity business and consumer. So that agriculture and agriculture commodity business can take breath, and both can compete with international business scenario. 

On ground farm loan is going to lifestyle expenses in rich states. it going to living expenses in poor states. There is same situation with food subsidy. Food subsidy is going to importers, traders and other middleman. Bad agriculture loan has reached to Rs. 60,200 crore rupees in year 2017 with increase of Rupees 24,800 Crore in comparison to year Rupees 48,800 crore of year 2016.Govt is also giving a lot of food subsidy through PDS system.

Govt must come with Aadhar based social security scheme where every citizen can be covered. Farmers and consumers both will cover in same scheme and there will be no seepage in the fund meant for consumer and farmers. At another side investment in agriculture and other business will secure. Both the business will run independently without interfere of Govt. 

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