Monday, January 11, 2010

New way to Tackle Food Inflation


In recent months we are paying high for vegetables and we use to complaint that the food inflation are at the peak and the government fails to control food prices. The real fact is that the villagers who produce vegetables will not receive the entire benefits. The fact is that about 70% of the population involved in farming belongs to below poverty line and when the people receive benefit their level will be improved. There are various projects implemented by state governments to reach the value of food prices directly to the farmers and to elevate the poverty in the Below poverty line. Schemes introduced by central government to eliminate intermediate who are beneficiary of food inflation are (i) Minimum support price level, where a minimum price should be given to the crops for example paddy will be priced at Rs 1050 per quintal. This scheme should be made more effective by creating awareness among farmers about the scheme and to make possible for the farmers to complaint about misleading of this scheme. State governments Gujarat and some part of Andra Pradesh introduced a scheme called " The market Committee yards" which connect farmers and end users directly. Tamil Nadu stays a head of other state by introducing " Ulavar Sandhai " which brings both the producer and the end user to come together at a specific place which helps the farmers to get market price without intermediary. The other new system which is planned to implement is selling of vegetables through Public Distribution System(PDS). Government will procure all the vegetables from farmers at reasonable price and they will be sold at 50% of market price through which farmers and the people who are living under Below Poverty Line will be benefited. Let us expect soon vegetables in PDS at 50% of market price.

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