AGRI-EXPORTS-YESTERDAY'S DECISION POSTPONED FOR TOMORROW!

When a government "elected" to govern vacillates on practically every major national issue, who is supposed to bear the consequences of "no decisions" and "delayed decisions'? The honest and hapless citizen, of course! It is well known that government granaries are bursting with food grains, carried forward from year to year with no guarantee that the quality of grains is fit enough for human consumption. Yet government does not take decision as to how these huge stocks of grains are to be disposed of or utilized, forcing the country's judiciary to intervene and order its distribution free to the poor people of the country. A courageous government would have gone for massive exports as a part of a barter arrangement to get them back if a need arises in future. But like the proverbial "Dog in the Manger" policy, government assumes the posture of the classical "see no evil, hear no evil and speak no evil", allowing the precious food to rot in the open! Latest example of prevarication is with regard to export policy vis-a-vis cotton and sugar. The "serene", "saintly", "morally superior", "incorruptible" and modest Prime Minister is seeking consensus on export as if every action of his government is guided by such a noble attitude. Every body knows in this country that the whole government works on a"consensus" by a single extra-constitutional persons in Delhi and the so called meetings of the cabinet are nothing but a charade! Here is a take on this issue.

"Prime minister Manmohan Singh is meeting a group of ministers including Finance Minister Pranab Mukherjee, Agriculture MinisterSharad Pawar, Food Minister KV Thomas and Commerce Minister Anand Sharma to arrive at a consensus on trade policies especially in sugar and cotton exports. Recently, Pawar had criticized the export policies of cotton and sugar. The sugar export is a contentious issue as even after having a surplus production and international demand, the export has hit a road block in the absence of a clear policy. After notifying the export of 2 million tonne sugar in two tranches this season, the food ministry had to suspend the notification of another one million, which was decided in the meeting of a panel of ministers on March 26. The panel wanted a new and faster mechanism of sugar export, keeping in view the principles of equity and transparency. But even after the elapse of a month, the consensus is yet to be arrived at. This inertia is hurting the sugar industry, which is sitting on a heap of at least four million tonne surplus sugar. The industry wants to sell it as fast as possible to clear the cane arrears of farmers, which have touched a record high of 10,239 crore. "The government is yet to come out with a fresh mechanism. When the policy has worked well for the last five tranches over two years, what's the need to change it in the mid of the season," said a sugar mill owner. Pawar, who crafted the existing sugar export mechanism, has now become a self-critic. He believes that the existing mechanism is slow and needs to free up a bit to augment faster exports. "The policy shift is making us to wait. If there is no consensus on the alternative mechanism, let the sugar move out through the existing one. We already have lost one precious month," said another miller who was in New Delhi to attend a conference of International Sugar Organisation. Currently, the government allocates export quota to individual mills on the basis of actual average production over three years. Now the panel of ministers wants to adopt a new mechanism that could be based on 'first come, first serve' basis" 

If cotton farmers and exporters are bound to gain through exports why should the government come in the way? Is the government scared of shortages in the domestic market? With sizable foreign exchange in the kitty, such scarcity situation is always controllable through imports. Similarly why is the government so much concerned with sugar, a commodity considered the "white poison" associated with bad health world over? Will it not be a wiser policy to allow free exports and earn as much foreign exchange as possible.? India need not be concerned too much about sliding of sugar prices in the global market because such a situation has the built-in safeguard to slow down export. If domestic prices go up it should be taken as a blessing in disguise because that will force the consumers to cut down on sugar intake benefiting the whole country. Why spend sleepless nights on these mundane issues? It is time that the sugar industry is totally decontrolled and the past practice of micro-controlling sugar marketing, sitting at the air-conditioned offices at Delhi, is abandoned in the interests of all concerned in this country.

V.  H.POTTY
http://vhpotty.blogspot.com/
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