August 31, 2009

Uncontrollabe Natural Factors or Drought of Ideas or Lack of Management Mechanism??

The dredge from exports and foreign investment may have moderated, looking at 6.1% GDP growth in 1st quarter but the drought has emerged as a new major challenge in India. As the primary industry is hurt, the rest of the production chain will experience the flow-on effects. For instance, a sharp decline in farm output is expected to reduce demand for transport and storage services, and the supply for exports could also drop sharply. It would have a cascading effect onto hydro electric generation, ground water levels, inflation, automobile sector, fishery industry recharging of reserviors and many more allied industries. Even gold import has decreased by 90% as high prices prevented the people and drought further acting as a spoilsport.

Drought has even emerged as another terrorist for heaven of India, J&K which has losses of over Rs. 400 crore due to it. Agriculture production is likely to fall by 14% - the third highest fall in foodgrain production since 1964-65 and expected to impact the GDP by around 60-100 basis point.

The state governments are demanding that the limit of 100 days assured employment under the NREGP be extended to 200 days as a drought-relief measure. 20% cut in salary by Mumbai office bearers of Congress Working Committee in the face of drought is presumed to act as a panacea. Governmet promised that every BPL family would be entitled, by law, to 25 kg of rice or wheat per month at Rs 3 per kg. Let’s learn some facts that are government really serious enough?

The Maharashtra government has sealed its ambitious plan to develop a Rs. 300 crore statue, tallest in the world once it is completed to honour the state's biggest hero, Chhatrapati Shivaji. Is it really justified when the state is grappling with huge debt and drought in 2/3 of its area? And where dozens of impoverished farmers struggling with debt and poor rainfall have killed themselves in southern India in recent weeks, leaving behind families plunged even further into poverty. And how can we forget the Vidharba mishap? The mockery is that government establishment is still debating on actual number of people living below poverty line. The previous rounds of fiscal stimulus are now tickling down the economy, providing a notable boost to activity, but what about the rising fiscal deicit? “Kahin Barish to Kahin Sookha”. While Western UP is relling under severe drought but Eartern UP is under floods. But these floods are not due to rains but are caused due to excessive flow of water from Nepal. Now what would you call it: unforseen natural calamities or …?

Wih drought turning into reality, and speculation and hoarding spiralling food prices, the agriculture ministry is planning to amend the Prevention of Black Marketing and Maintenance of Supplies of Essentia Commodities Act (1980) such that centre can take action against hoarders of food grains directly. But that amounts to treating the symptom than the disease as the government is yet to come up with a comprehensive drought management mechanism.

What shall the government do further to mitigate the adverse impact arising from climatic changes? (Food for thought: Establishment of, foodgrain banks, village seed banks, water banks, feed and fodder banks, and village knowledge centres, ….. and what else!)

As the government faces a sea of questions, the nation thirstly awaits solutions.

Share your views!

3 comments:

  1. hey Karan, thx 4 th comment.
    Am actually aware of these kind of problems, thy normally occur wth gov and its organisations(sometimes wth pvt too).
    its a vicious circle, and we hv to breat it at its weakest point to get out of it.
    I know the value Rs2 in Rs 42. it nears to 5%.. which had costed DMRC much more.

    i wanted to write these kind of isses too bt not able to due to some problem..

    ReplyDelete
  2. Hii ranjan..if you think you wish to write for economical issues or any other issue which would be relevant for Placement..you are most welcome to share your thought...as we do understand that knowledge industry can only be exploited to its fullest exploitation..when knowledge is shared..

    And we would really appreciate if you people could think on some or the other issues that we post on the article,discuss among your peer groups and come up with some analysis..and we think that giving boost to this kind of group discussion and sharing helps a lot in one;s thought process...

    ReplyDelete
  3. ranjansardana.blogspot.comSeptember 7, 2009 at 10:53 AM

    actually mistakenly i posted a earlier..

    i agree wth wat u r saying..
    i'll surely b a part of it soon

    ReplyDelete