Tuesday, July 12, 2011

Cheap food no one wants

On July 11, the Economc Times carried a graphic feature showing that India is buying more of high-value food.

The share of cereals in verall spending is down from 18% to 15.6% in rural India, whereas that for pulses is up from 3.1 to 3.7; for milk from 8.5 to 8.6; and for eggs, meat and fish from 3.3 to 3.5.

Meanwhile, the NAC has been barking up the tree of pulses, and pressuring the broke exchequer to up the allocation of cereals to the poor, and the non-poor. This only echoes the fixation of our entire food and agriculture system with grains  for several decades, as a result of which we have a glut of grain, the depots are choked, and we are considering exports.

Centralised planning is always behind the curve.

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