Tuesday, June 10, 2008

Souring Prices, Solution of the day

Situation of today
What a pathetic Situation India is facing today! No matter what party the government is, the prices are to sour, and the common man is on the roads!When you ask the Prime minister he would say, the world is facing a crisis, not India alone!When the Stock markets failed, India sustained, they said it is because of them. Can we not sustain the crisis of the world today! Obviously we cannot! What are the reasons for this sudden change?A study conducted between 1991 and 2001 showed that India had on an average 70 % of the land area for cultivation in each of the states to feed the population in the 30% of the area.
The Reasons!
With the onset of SEZ and accelerated Industrialization, massive residential zones, we have grabbed upto 15-20% of the fertile agricultural land . What is the impact? Raise in the prices of essential commodities by many fold.

We, a nuclear family, used to spend for provisions a sum of 1500Rs. and now it goes to 2100Rs. For vegetables, it used to be Rs.100 a week, now it goes 200Rs. I once visited to buy a small piece of land near to Shamshabad, though it did not materialize as I wanted it for residential purpose and not for investments.The Panchayat president had 24 acres of fertile agricultural land sold to the builders and promoters to lay out the residential plots. How pity it is! The farmers just see the shining gold that fills their bags and the builders are just after making money at the shortest span of time. The NRIs are earning relentlessly just to invest in the Land in India, though they don't really need to. I know many people who own more than three residential plots, even more than five plots. These sick affluent people are least bothered what would happen to their fellow beings. They just want their families to just enjoy the life by grabbing the land with the power of money, which unfortunately is not regulated today. But with this trend, the D-Day is very near when the common man, unable to make his ends meet, will come on to roads and go the way of a burglar which is not only a negative indication of a spoilt society and take my word, these affluent people of today will come on to roads or have to keep Z- category security which will squeeze out their bank balances in no time. Where do we run then?

The Solution
I propose a five point solution to problem after lot of analysis. People have to become a little selfless in terms of buying land (You don't need to donate anything at all!)

  1. NRIs and affordable people should limit their purchase of land(2 plots should be a limit)
  2. Builders and promoters should find alternate businesses
  3. Agricultural land should not be regularized in the coming five years
  4. Government should consider action plan to increase the cultivation land and promote agriculture
  5. SEZ and other Industrial areas are to be given barren lands for their development.

As Gandhiji said, we need to balance the Industry and Agriculture in our small country when compared with our population.

Friends, make Inda a better place to live....

1 comment:

Pratul said...

As per my opinion, the reasoning for inflation has gone one dimensional. Decrease in agricultural land is not the only reason. There are some other reasons too. Farmers are also going for crops like Sugarcane which give them direct cash (That is why I think sugar price is somewhat stable :-) ). This decreases land under grains.
Also, the farm land is getting divided between siblings after their parents because of which crops are produced in small-small pieces of land which decreased production / acre.
Moreover cost of fertilizers has grown many folds within last year; electricity and labor costs are ever increasing. So we can't expect farmers to sell their goods at stable price, they have to get more to run their houses. But the irony is they are still getting the same amount and middle men are eating up more money. This has to be addressed.
These are some points which I thought are important in food price increase.