- Can the government think of doing anything more than shuffling paper when it comes to combating food inflation?
- Organising farmers into cooperatives and companies on the lines of Amul and creating organised retail through these agencies has been recommended.
- Credit would be squeezed, exports stopped, imports liberalised, a new bout of sterile debate kicked off on opening organised multi-brand retail to foreign investment. This is not irrelevant, but also not terribly effective, as experience shows quite conclusively.
- There has to be another green revolution, to create a quantum leap in farm productivity and raise aggregate farm output. This cannot be achieved merely by shuffling paper. Capital-intensive farming will have to spread beyond Punjab and Haryana, farmers will have to be organised to achieve scale economies, and reap the benefits of cooperation.
- Farmers need to cooperate to form cooperatives and companies, become stakeholders in the ongoing, inevitable urbanisation of India and also capture a good part of the value that is created in managing the supply chain that links the farm with the consumer.
Saturday, December 25, 2010
Nice Article on Inflation: Importance of organisation
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