- Rakesh Kochhar
- Gurgaon (Delhi - Ncr)
Executive coach & business consultant, CoachNme
Is it good economics to provide subdized food grains or good politics?
Lets take the example of India. Can a country of 1.2 Billion people provide subsidzed / free foodgrains to nearly to 600 million persons near the poverty line in India. Food inflation is officially at 9.3% p.a while in reality its around 20%.p.a.
Then there are supply side constraints as agriculture growth rate over 10years average 2.7% p.a. only. Compare this to the population growth rate 1.4% p.a.Further India has recently been running large current account and fiscal deficits threatening its budget calculations.
Elections are going to be held in two years. The economy has decelerated to 6.5%p.a. growth rate from 10% p.a.over last 3 years.The rupee has fallen by over 20% against the dollar in last 2 months.The Sensex its at its lowest in last 2 years.
Other developing economies especially the PIGS are already being bailed out. Can India take this contrarian route?.
What about the fundamental rights of food and security for its citizens? Can this be overlooked because they don't have the buying power or employment opportunities to feed themselves?
Whose rights need to be protected? The economy or its Citizens? Is the proposed Food grain security bill a step in the right direction? Are there other alternatives?