Thursday, June 22, 2006

Wheat and Sugar...

Should I blame the government for importing Wheat and Sugar for controlling the prices? Read the set of events and decide for yourselves

1. Government doesnt give a good support price for sugarcane and wheat (infact it doesnt give a good support price for anything ;-) )

2. Farmers stop growing sugarcane (escalating costs, sugar mills not paying them on time and properly, more than 50% of the sugar mills shutting down) and wheat (Punjab farmers are avoiding farming due to high costs of agriculture involved and are chosing cab driving in Europe America, Australia.. they go to every nook and corner in the world ;-).. wheat is not the only reason though ;-) )

3. There is a supply crunch due to step 2, where as the demand is on the rise. (people are switching from rice to wheat to shed flab u know ;-) kidding , but the demand is certainly high )

4. Prices spike due to step 3.

5. Government decides to import wheat and sugar from foriegn nationals at a higher price.
(Aus govt is involved in a wheat scandal, so in Indian government)

OVerall effect - A few richer pockets. Other coutries making benefits at the cost of Indian farmers. Way to go India

1 comment:

sudeep said...

nice article zeeds....But is Indian exports mostly agricultural in nature ? no idea abt that though ...what is the percentage of agricultural exports ??