Wednesday, November 13, 2013

THE THRIVING RURAL COUSIN

 Egged on by the abject days of PL-480,the  ' grow more food ' slogan  brought on a regime of  incentives / subsidies  that sadly  gathered  political overtones with the prescribed  economic / market tools rusting  in disuse.On one hand we have  record procurement by the Centre at increasing MSPs and on the other, huge amounts of stored  grain ,  neither  funneled  to the supply chain nor taken care of , rotting   away.Today  despite  bumper grain crops the retail prices are soaring.
          In the meanwhile,  inclusive  schemes like MGNREGS have led to higher wages in rural areas  and when bench marked to inflation,  rural wages have risen faster than inflation since 2007-08.  Then there is the  rapid intra-state rural-urban migration  fueled by job opportunities in  infrastructure and construction projects in urban areas.  The NSSO data shows that nearly 72 per cent of male migrants from rural areas to other parts of India sent remittances in 2007-08,  to families in rural India, boosting  rural consumption .The rural demand for of vegetable , milk & poultry products  went up sharply,  on this new found prosperity.You can not forever blame untimely rains ,the middlemen  and so on, to explain away serious structural maladies in the secondary agro system.
        The income-trailing rural/ urban  population has still to make do with onions and potatoes  and the  contingent price escalation of the tubers, in the overall scenario, brings in bewilderment and anger. Little wonder that  this ' twin ' has the power to swing elections !. A complete redesign in boosting production of not only the poor man's tuber twins but the entire gamut of perishable food  items, together with storage and distribution mechanism on a national perspective, is a vital and pressing need.  One thing is clear .The problem of the urban consumer and his  rural cousin, is not going away soon.
                 ( PUBLISHED 14/11/2013- BUSINESS STANDARD )
 

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