Looming Drought, El Nino Effect: Is India Ready?

In addition to the Global recession as well as the plummet in exports and cascading effects on the economy due to the International squeeze on liquidity and depression like conditions. India and China have largely been able to post growth due to their internal economies and consumption. In Addition the Agriculture in India was on a growth track from the last six years.

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However, all this is set to change and we are facing a crisis of very bad kind with the rains having given a go to the fortunes of the farmers. The MET department has officially revised and downgraded its estimates and we are looking at a severe drought condition in the making. How the government tackles this problem along with the medical epidemic of the HINI phenomena is one big question mark.

No laxity can be afforded as things will only worsen. We are looking at 35% of the districts facing drought on one hand and the Agricultural output down by 5%. Add to this the increase of prices in food grains, pulses, and oil seeds; nothing can be more unfortunate.

In addition to the need for buffer stocks being made available to each and every hungry mouth, the government will also have to deal with the prohibitive numbers of small and marginal farmers who have not been able to sow and reap and are ridden with an alarming amount of debt without any succor in sight.

A National white paper and policy initiative that takes long time measures and not short sighted ones is called for at the earliest. And rather than Loan waivers or populist measures, we need to reassess the whole cycle from the grassroots and come out with solid government investments for the best returns in the coming decade.

And the World Bank and the corporate houses and the Capitalists who do not want the government to invest in social and just causes are damned. What say?