The Hindu Business Line : Food distribution

Given our limited abilities in handling the globalisation process, we have allowed ourselves to be surprised by the international prices of wheat, rice, pulses or other commodities. As with crude prices, which the “oil cartel” has hijacked, with consequent problems for so many, the trend continues to other commodities.

Coffee prices zoomed a few years ago and, recently, rubber was very volatile. Base metals copper and zinc played out their rapid run towards the latter part of 2006. Now it is the turn of wheat, which affects many who are otherwise not concerned with globalisation.

While the strengths of a market economy may provide a good deal to the middle-class consumer, it is also essential to build a system where the poor and needy are insulated from “price shocks”. As a first step, it is essential to bring in greater efficiencies in handling farm produce. There are inadequacies in proper storage, distribution and logistics. As a leading industrialist said recently on a popular TV channel, there are forces, both within and outside the administration, whose vested interests stymie efficiency.

In the era of globalisation, where most of our actions are influenced by happenings elsewhere in the globe that are beyond our control, it is necessary to have in place an efficient distribution system.

It is time non-performing monoliths were wound down and the important task of food handling moved to more efficient, perhaps private, entities. Technology (read IT) should be used to bring in transparency and accountability.

Functional and independent management should be assigned the responsibility of holding down costs and creating surpluses. The purchasing of wheat at $390 dollar per tonne should galvanise the government into action to bring in greater efficiency in the management of farm produce.

V. Balakrishnan e-mail