aday’s blog

Hi,
Got to give it  to Supreme Court. The way it is handling the importent issues. They deserve respect.

As I said, in Grains of India; the main point that actually will come back again would be

Goverment purchasing grain from farmers at higer cost -then what market gives them.  Good for farmers(consider that for now). So they sell goverment more grains.

party two the non goverment players get grains at lower cost, and hence sell at lower price.

Now goverment not only has to buy- it also has to sell the grain. We know, goverment works with minimum profit. So off course there is not too much of price hike. But it atleast has to sell it a little over the purchase price.  ( to pay for the agencies involved).

So who is going to purchase the goverment grains,  which are at higher cost then available at market value. Plus I add another responsibility on goverment- they also have to sell a part of it at a far lower price then market value to satisfy the poor population among us. 

Hard for anybody! really hard. ( you can say- its their job to take losses!- lets consider we want them in profit, for development goals)..what to do? what to do?
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Before we understand anything. or think of solution - IMPORTENT

all this problem is there-
1. the purchasing power of people is very less. Hence we(as government) have to sell at lower cost.
2. the income( also means purchaing power) of farmers is less. Hence we have to purchase at higher cost.


who are the people who get profited by goverments purchase at higher cost??
 the farmers…their income is increased this way.

they are now in a safer zone- I mean they now use better methods for harvest. Better methods for farming. Buy seeds.

NOW- do goverment has to pay them in MONEY. The answer is no. They need the high money because they need to farm back. Why not to help them over that. Why not to sell them at credit.

Aint that better - money is purchase power. But if you make the advantages u give/ tax you take from  farmers in terms of document. The money is there for them to use. You are increasing the normal purchase power.
I mean pay them in money plus in credits to buy seeds, buy electricity, buy equipments, land tax, water tax.

How many of our losses can be reduced by using this method. How many departments have to give their taxes off because farmers don’t have money. why not to solve all of these in one shot.

Not only do farmer will already be assured of getting everything they need for next years farming. They will be more secure then you can ever make them.

Plus you have just reduced your market purchase price. ( i know the credits are there- let this finish) The actual cost that FCI or State Food boards pay would be reduced.

So you can acutually sell at lower cost to everybody, even to poor( may be lower then what market offers them). Putting the institutions(State food corporations, FCI) in profit.  By low prices this could also reduce their left over grains in godowns. cost of disposing the rotten grains. plus  can have more free space around the year. consider the cost that is saved this way and the profits possible ahead with more free godown space. 

Second question comes- the credits given-they are cost too. Now credits can be seperated from the dealing institutions. they can be put into their respective departments.

Different regions have different requirements- For instance- in bihar irrigation department would be giving away less of irrigation credits then in madhya pradesh or Orissa. same would apply for electricity, seeds, loan subsidies.  every place will be giving more of what it has and less of what is does not have.
 That will help! At then end of year so much money we have to forfiet each year in taxes that can be considerably reduced.

Put forward conditions for better output, to get more credit benifits.
This will help. when you are not dealing with money directly, things change and more money stays there in open market then just going from government and returning back to it.

In short- where ever possible where goverment is supposed to  have circular transections with farmers make it in documents. Leave the money with them, don’t take it back. Let them use it in open market. You better understand the value of travelling money. 
 Free the money, people, free the money, let it flow.

…………..Apurva

Think it over

After so many days- I took my courage and decided to watch news again.
I been reading a bit. But frankly been avoiding the news since a month. What is the use if you are not going to work on it.

The news patterns have changed a bit. Got better.
The news was different for me. I found it better. I remember when there were only reactions by people. But here I could watch people taking charge of situation.

Several points that attracted my attention

The free distribution of grain- This is first time that government has been taken head on- constitutionally to distribute the rottening grain stores.
They gave their reason (same every year). But  this time they had it.

I did heard a good reasoning from officials- the cost of distributing free is too high. Infact their reasons given against against high selling price of the stored grain was quite good. But  if we take the example of past years and calculate the cost of grain that goes in dump  due to non-distribution. I am sure we can get a really low price for the grain that it wants to sell.  Take a reasonable amount of grain that goes to waste every year(which always happens). Consider that as a regular cost in it’s books and lower their current prices accordingly. I am sure the final books will show the goverment agencies reducing their losses. 

Just take the market value of grains we loss each year + the cost incurred in getting rid of that grain and find a reasonalbe price to increase it’s selling. (off course the goverment officials involved may feel  they would loose a lot of personnal profit; then again the increased number of commisions would make them up)


Second main point being put in question by officials is of reduced purchasing power of society.
That is a major question, that does comes in question whenever we wish to sell the grain purchased from farmers( at higher then market cost) to the market. I will say we(as government have put ourselves in jeoperdy).. please do read the next post.

I am realizing, lots of points have come up in last few months. Points, where we are not missing something  and loosing too..
CWG, Education bill.
Good news our growth rate increased last quarter.

I will be writing. ( my job search can go to hell, This is more importent)

See you very soon.

……….Apurva