AVOIDABLE BURDEN - an Editorial in Business Line
Dear Editor,
Due to our inadequacies in handling the globalisation process we allow ourselves to be surprised by the international prices of Wheat or rice or pulses or other commodities. As in the case of price of crude oil, which the "Oil Cartel" has hijacked to the ill fate of so many, the trend is continuing to other commodities. We saw the coffee prices zoom a few years ago and recently Rubber was very volatile. Base metals copper and Zinc played out their scintillating run towards the latter part of 2006.
Now it is the turn of wheat which affects many who are otherwise normally not concerned with globalisation.While we may believe in the strengths of market economy to provide the best to the consumer, we cannot be seen to be doing nothing in the case of wheat a basic commodity which will hurt the poor very badly.
It is therefore essential to build a system where the poor and needy are insulated from these shocks, lest the "price shocks" sway the government itself. As a first step it is essential to bring in efficiencies in handling the farm produce. As your paper through its numerous articles on related topics, have highlighted, there are serious inadequacies in proper storage, Distribution and logistics. As the leading industrialist of the country opined in a popular channel, there are forces both in and outside the administration who have vested interests, which do not drive efficiency.
In an era of globalisation, where some of our actions are influenced based on happenings elsewhere in the globe which are beyond our control, it is necessary for us to have in place an efficient system which is lean and functional. It is time non performing monoliths like the Food Corporation of India are given a quite burial and the handling switched to more efficient hands. Technology (read IT) should be brought in to bring in transparency and accountability. Functional and independent management shall be assigned the responsibility of driving down holding costs and create surpluses.
The need to purchase wheat at $390 dollar per tonne, should galvanise the government in to action to bring in more efficiency and transparency int he whole management of the farm produce.
Regards,
Balakrishnan
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