Averages, percentages, rates of growth, indices, inflation rates etc are the statistics that hide more than they reveal. These are convenient for mundane justifications and sometimes are used to deliberately mislead the public or whosoever they are addressed to. For example, averages do not represent any of the individual figures. Average size, height, weight, length, breadth do not represent any individual variable. If one person is six feet tall and the other is four feet, the average height will be five feet and that figure will have no meaning. Another example: If one calculates the average depth of a stream to be crossed and finds it less than his height up to waist, he may drown while crossing the stream.
Similarly, rates of growth depend upon the base used. The rates of growth in GDP, productivity, population etc. do not provide the basis to compare different sets of data. One percent growth in population in India does not compare favourably with even 2 per cent growth in the sparsely populated countries of Africa or South America. For example, 1 per cent growth on one thousand population means an addition of 10 persons and a 2 per cent growth on a base of 100 persons will be an addition of only 2 persons.
In the same way, agricultural productivity and production growth in Punjab, Haryana, Western UP and even Andhra Pradesh will remain lower than that in Gujarat, Bihar and Rajasthan because of the higher base of production and productivity in the former set of states even though the gross addition to productivity and production in these states might be much higher. Thus the rates of growth in these states are not comparable statistics.
Then look at the rates of inflation. When the rate of inflation increases, it certainly increases the prices of the commodities. Yet, in case the rate of inflation decreases, it does not mean the prices of the commodities in the market have come down. In a declining rate of inflation, the prices still keep increasing, but at a slower rate. This mollifies psychologically the consumers and other users of the commodities with no relief on the higher and higher prices they would continue to suffer from.
Just a few days ago Union Food Minister K.V. Thomas tried to counter the fact of huge wastages of food grains due to lack of proper handling and scientific modern storage facilities. He mentioned that spoilage is only 0.1 per cent of the stocks handled. Undoubtedly, this low figure quoted by the minister looks to be unbelievable. The other day there was news of 80,000 quintals of wheat rotting in the open at one place. This cannot be a singular case. We have seen the track record of export consignments rejected and not an insignificant level of below standard supplies in the public distribution system as well as the deplorable plight of stored grains in the open and on plinths for months together. Yet believing him for a moment, 0.1 per cent loss means approximately 20,000 tonnes of grain annually from Punjab alone.
Going by the present prices and storage as well as handling costs, it amounts to a very reserve estimate of loss of more than Rs 30 crore in one year in the state. If this loss is calculated for the last 30 years, it far exceeds the amount needed for the construction of metallic silos for more than 15 million tonnes to food grains. This loss is more than double this figure at the national level.
If the system saves this much grain in silos, there would never arise any need for imports at exceptionally higher prices from the international market and exports could be made as per demand from outside at good prices. If the stocks are managed properly and stored scientifically, the FCI could turn into a revenue-earning organisation rather than a drain on the national exchequer.
The basic expectation from the Food Corporation of India was that the organisation would earn some revenue for the government. In the initial two years the organisation did turn in some profit for the government. What spoiled the game was the laxity on the part of the management of the FCI. Way back, three decades ago, it was estimated that if a bag of wheat was procured at the minimum support price and handled as well as stored for three years the way it was done by the organisation, it would cost the government more than the cost of distribution free to the needy right from the market yard where the grain is procured.
The Supreme Court of India directed the government last year to distribute grains free to those below the poverty line rather than waste these as was being done by the organisation due to lack of proper handling and storage. Still, the matter is being taken lightly and percentages are being quoted to cover the default lines. Indian ethos and culture regard as God (Ann Parmeshwar hai). The wastage of even a single grain is considered to be a sin! Unfortunately, our government system considers thousands of tonnes of grain wastage insignificant.
Look at the effort which goes into the production of these grains right from the preparation of land, sowing seeds, nurturing the crop, harvesting, handling and the costs and effort involved in bringing these grains for the kitty of the government. And, the government makes light of the grain wastage!
It is not just the wastage, there is corruption in handling grains and supplying these to consumers through the public distribution system. A World Bank report has estimated that 60 per cent of the grain supplies for distribution through the PDS in India do not reach the depots. These get sold straight in the open market. In corruption Punjab excels all other states. Here 90 per cent of the food grains supplied for the public distribution system are sold directly in the market. One wonders, where the government system and the authorities that be, are taking the country through utter laxity, insensitivity and corruption. If the situation does not take a healthy turn-around, the time is not far when the nation would be helplessly staring at the dark precipice of disaster on the food front.
Similarly, rates of growth depend upon the base used. The rates of growth in GDP, productivity, population etc. do not provide the basis to compare different sets of data. One percent growth in population in India does not compare favourably with even 2 per cent growth in the sparsely populated countries of Africa or South America. For example, 1 per cent growth on one thousand population means an addition of 10 persons and a 2 per cent growth on a base of 100 persons will be an addition of only 2 persons.
In the same way, agricultural productivity and production growth in Punjab, Haryana, Western UP and even Andhra Pradesh will remain lower than that in Gujarat, Bihar and Rajasthan because of the higher base of production and productivity in the former set of states even though the gross addition to productivity and production in these states might be much higher. Thus the rates of growth in these states are not comparable statistics.
Then look at the rates of inflation. When the rate of inflation increases, it certainly increases the prices of the commodities. Yet, in case the rate of inflation decreases, it does not mean the prices of the commodities in the market have come down. In a declining rate of inflation, the prices still keep increasing, but at a slower rate. This mollifies psychologically the consumers and other users of the commodities with no relief on the higher and higher prices they would continue to suffer from.
Just a few days ago Union Food Minister K.V. Thomas tried to counter the fact of huge wastages of food grains due to lack of proper handling and scientific modern storage facilities. He mentioned that spoilage is only 0.1 per cent of the stocks handled. Undoubtedly, this low figure quoted by the minister looks to be unbelievable. The other day there was news of 80,000 quintals of wheat rotting in the open at one place. This cannot be a singular case. We have seen the track record of export consignments rejected and not an insignificant level of below standard supplies in the public distribution system as well as the deplorable plight of stored grains in the open and on plinths for months together. Yet believing him for a moment, 0.1 per cent loss means approximately 20,000 tonnes of grain annually from Punjab alone.
Going by the present prices and storage as well as handling costs, it amounts to a very reserve estimate of loss of more than Rs 30 crore in one year in the state. If this loss is calculated for the last 30 years, it far exceeds the amount needed for the construction of metallic silos for more than 15 million tonnes to food grains. This loss is more than double this figure at the national level.
If the system saves this much grain in silos, there would never arise any need for imports at exceptionally higher prices from the international market and exports could be made as per demand from outside at good prices. If the stocks are managed properly and stored scientifically, the FCI could turn into a revenue-earning organisation rather than a drain on the national exchequer.
The basic expectation from the Food Corporation of India was that the organisation would earn some revenue for the government. In the initial two years the organisation did turn in some profit for the government. What spoiled the game was the laxity on the part of the management of the FCI. Way back, three decades ago, it was estimated that if a bag of wheat was procured at the minimum support price and handled as well as stored for three years the way it was done by the organisation, it would cost the government more than the cost of distribution free to the needy right from the market yard where the grain is procured.
The Supreme Court of India directed the government last year to distribute grains free to those below the poverty line rather than waste these as was being done by the organisation due to lack of proper handling and storage. Still, the matter is being taken lightly and percentages are being quoted to cover the default lines. Indian ethos and culture regard as God (Ann Parmeshwar hai). The wastage of even a single grain is considered to be a sin! Unfortunately, our government system considers thousands of tonnes of grain wastage insignificant.
Look at the effort which goes into the production of these grains right from the preparation of land, sowing seeds, nurturing the crop, harvesting, handling and the costs and effort involved in bringing these grains for the kitty of the government. And, the government makes light of the grain wastage!
It is not just the wastage, there is corruption in handling grains and supplying these to consumers through the public distribution system. A World Bank report has estimated that 60 per cent of the grain supplies for distribution through the PDS in India do not reach the depots. These get sold straight in the open market. In corruption Punjab excels all other states. Here 90 per cent of the food grains supplied for the public distribution system are sold directly in the market. One wonders, where the government system and the authorities that be, are taking the country through utter laxity, insensitivity and corruption. If the situation does not take a healthy turn-around, the time is not far when the nation would be helplessly staring at the dark precipice of disaster on the food front.
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