First Written on April 03, 2002 Updated Thursday, June 26, 2008 05:34:43 AM Global Food Crisis Rodents and field rats are having a field day - Madhavan Gopalachary Preamble The New York Times is carrying a series of articles on the global food crisis in the year 2008. Not many know that India is a major producer of crops and next only to USA. The happenings in India on the basic crops front decides the world food prices just like oil prices are decided in the middle east. I read one article on June 22, 2008 in the New York Times titled 'India’s Growth Outstrips Crops '. I had written an article titled 'Food or Computers' in April 2002 and I have revised it based on the present circumstances. However, many of my observations are still valid.  Food Crisis in India and hence the World An interesting item I read in March 2002 was that India was holding 25% of world's  stocks in Rice and 33% in Wheat. All this had been procured through the taxpayers money and the stocks were rotting due to inadequate storage facilities. 2 million tons of grains are rotting every year. The estimated cost to the taxpayer is approximately USD 200 per tonne as against the estimated per capita income of USD 500. Strange as to why GOI is not taking action on this storage problem.  Compare this to years ago, when I was a kid, and when we were getting US Wheat under PL480 funds during JFK's/Lyndon Johnson's regimes. According to the reports, the wheat imported at that time was unfit for horses in US but was good enough for us. For every Kilogram of wheat or rice, we had 50 grams of stones and other muck. One had to spend hours sifting. Indian farmers produce enough wheat and rice now, but the government cannot build enough grain silos and FCI keeps the grains in open stock yards. Rodents and Field rats are having a field day. Its exports were rejected by some countries as unfit for human consumption.  GOI still controls the Public Distribution System (PDS) for food grains for many poor people, who have to hold ration cards and stand in queue for hours. The government had started procuring food grains when there was a shortage. The government had also placed QRs on exports of grains. But why not let the farmers sell their products directly to customers through private distribution channels, when there is a glut and let the market forces decide the prices? Why not ask leading grain processing companies of the world to provide us the technology, if we do not have them. Why not ask them to set up shop here? This will create tremendous job opportunities in the Agriculture sector. Planning is the first and the most important function of good management and this seems to have been forgotten. Agriculture is the primary sector of any economy and should be given the topmost attention. Most important action that is to be taken is saving the estimated 2 million tons that are eaten by rodents every year. For that we need good grain stores management. We must build Grain Silos and not allow food grains to be stored in the open.  India had done well in Agriculture in the past, thanks to our Agricultural scientists like Dr. M S Swaminadhan, a Norman Borlaug award winner. This is the equivalent of Nobel Prize in Agriculture. GOI is putting the cart before the horse. GOI should not fall into a trap of encouraging and listening to IT services sector lobby any more. How will the idiot computers run without Power ? The GOI should correct the present imbalances immediately and focus on the poor 260 million people. The development focus should be on Food processing, Power, Oil & Energy, Infrastructure and Transportation. GOI should remember its own admission that 26% of the population i.e., 260 million people are below the poverty line (BPL). This almost equals the population of USA. BPL means people who get less than 2200 calories of food per day. This does not include clothing, shelter, education, healthcare etc., India and UK are lucky because the governments are headed by former Governors of respective Central Banks. In UK the post is called the Chancellor of the Exchequer. India is further lucky to have the Harvard educated economist Mr. P Chidambaram, as the Finance Minister. Despite having them if things are not happening, what does it show ?  Written  by Madhavan T Gopalachary The original editorial for paying members can be accessed by clicking here. The free member version can be accessed by clicking here. The views, opinions and interpretations are personal. Sponsorship does not mean that the sponsors endorse them. Editorial Policy © Copyright, Jun-08 . www.madgopes.com . Without prejudice. All rights reserved www.mmgindia.com is the official website of Madras Management Group, Chennai, India. www.madgopes.com and www.mmg.name are personal websites and all editorials are published under their banner to retain editorial independence. We would highly appreciate feedback from readers and it may be sent to ipr@mmg.name.