Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Food crisis - the chronic issue
Thu, 7 Aug Pre-Open

Food crisis problem is not new for India. The situation is now becoming more critical as population burden has just kept increasing. The government has now to cater to the demands of a having 1.2 billion populace.

The problem of rotting grains and starvation deaths has not been new one, in India. As per the article on Bloomberg, around 255 m people go hungry despite stock piles.

The article has also highlighted that, various sites where Food Corporation of India (FCI) stores its grains were found out of order. While at some places the food grains were found rotten on other sites the grains were left in open area, covering them with plastic sheets. Approx 40%-44% of wheat and rice is diverted from beneficiary households. These huge quantities of food grains are wasted due to lack proper storage and negligent governance.

In the recent Union Budget, the government has proposed to allocate Rs 1.15 trillion rupees towards food subsidy and Rs 729.7 billion rupees towards fertilizers subsidy. While reasonable proportion of expenditure is doled out for subsidies, but these subsidies do not seem to be utilized in the right direction. So does that mean that subsidies are not required or government should curtail subsidies?

In our view, one of the major problems on the subsidies front is that they have been misdirected to a large extent till now. The government seems to have been paying for all the inefficiencies in the system since many years. Thus it's high time for the government now, to take steps which can control this mismanaged expenditure instead of curtailing subsidies.

There is an urgent need to correct the loopholes in procurement, storage and distribution fronts for greater efficiency. And thus government needs to focus on the infrastructure needs. This in a way will keep check on rising food prices and control inflation which is one of the important challenges for the country.

While the new government has shown keen interest in the infrastructure development, we will wait and see how well the policies are implemented and steps government takes to bring an end to decade's old stigma of the country.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Food crisis - the chronic issue". Click here!

  

Views on News

Ride the Indian Real Estate Revival with this 'Different' Smallcap Stock (Profit Hunter)

Mar 23, 2021

Affordability in the housing segment has never been so good in last one and a half decade. Here's how you could make the most of it...

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

More Views on News

Most Popular

Is Intraday Trading For You? (Fast Profits Daily)

May 13, 2021

Do you think you have what it takes to be an intraday trader? Find out in this video.

My Secret to Find Breakthrough Stocks (Fast Profits Daily)

May 7, 2021

I've used this trading technique for many years with great success. I'm sharing it with you today.

Are the Stock Markets Deaf to Covid Agony? (Profit Hunter)

May 6, 2021

Why are markets discounting the economic impact of Covid?

The Key to Profit from India's EV Revolution (Profit Hunter)

May 7, 2021

Stocks you must consider investing in before buying your first electric vehicle.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS