|
||||||||||
What should the Government do? First of all, If only the Government had begun importing food grains in June itself when it was known that there could be a gap, things would not have been so bad. Now the international prices have also gone up and the country will have to shell out more for importing food grains. Measures like a selective ban has already been imposed on exports and future trading on food grains. Besides that, permitting import of lentils and sugar by state-run firms at zero import duty may ease the situation.
Second, the Government should use its stick to punish the unscrupulous hoarders. Third, market intervention where necessary could help. Fourth, the public distribution system should be strengthened and proper channelised to better help the poor. Drought is the next worrisome issue. A total of 141 districts has already been declared drought-affected. Official figures reveal that a deficit of more than six million hectares had been reported in paddy cultivation. The kharif crop cannot be salvaged on account of the failure of the monsoon but the Government can concentrate on the rabi season. An assessment by the Morgan Stanley shows that 48 per cent of the cropped area has already been hit by the deficit in rain. Although Finance Minister Pranab Mukherjee has said that "there is no point in pressing the panic button," panic has already spread. Putting on a brave face, Mr Mukherjee is optimistic about the RBI's figure of six per cent economic growth rate. The Government is slowly gearing up to face the challenge by offering subsidised diesel and additional power to farmers, yet much more needs to be done. Farmers need smooth loans. The contingency plans for crops, drinking water, human and animal health and fodder should be launched immediately. Alongside, long-term measures to increase the production of pulses and oil seeds should also be taken. In addition to the buffer stock, the Government will do well to deal with the needs of small and marginal farmers. While Prime Minister Manmohan Singh has assured that there is enough cushion on account of bumper food grain production in the last two years, he has also cautioned that the reduced kharif crop may have an inflationary impact on prices of many commodities.
Swine flu is going to be the third chronic problem for the UPA Government. Already 18 deaths have been reported in the country and the panic is spreading fast with the media blowing it up. The Government has to ensure that there is no panic and that the country is fully prepared not to let this menace go out of control.
Tough Times For UPA | 0 comments (0 topical, 0 hidden)
|
LoginMembership has its privileges. Choose a username and provide a working email - that's all it takes to join. Click below to make a new account. |