The Hindu Business Line : Proper planning

The blame for the debacle in the sugar industry is being placed at the government's door-step for its flip-flop attitude in first banning exports and then rushing to provide subsidy for exports all in a matter of 12 to 16 months.

Similarly, in the cement sector, where the government rightly invited foreign MNCs to invest in Indian plants to create additional capacity, it is now complaining that they are profiteering. Of course they have to profit as they are in business and not espousing a social cause.

Iron ore, wheat and pulses are other such stories that highlight the failings of the government machinery. We are thinking of banning forward trade while the RBI encourages hedging in international exchanges! All this points to serious systemic maladies that need surgical intervention, followed by long- term rehabilitation (read sustained policies).

The maladies are the near absence of trained professionals involved in the decision-making when, the world over, people who take similar decisions are trained specifically for the job and have equipped themselves with a strong data-base and modelling systems powered by technology.

It is time experts were appointed transparently or hired on medium-term contracts to bring in far-reaching and positive results.

There is need to establish a better system of data collection on agricultural production and consumption, so that `what-if' scenarios can be extrapolated.

V. Balakrishnan

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