907 (2 of 10 series) An Exports-weak country should not turn dependent on imports

This is in continuation of post NO. 906 Click here to see post No. 906 at this blog. India is an Export-weak country, which means Export-income will be sluggish. If imports are not controlled, Balance of Trade Adversity will aggravate, leading to a Balance of Payments Crises. India has experienced such crises prior to 1991, which might have led to devaluation of INdian Rupee in the past. The Balance of Payment situation has easened after India started inviting and getting Foreign Investments into Indian Companies, by extending tax concessions, cheap land, and LPG (Liberalisation, Privatisation, and Globalisation). Though India may not be going to face a Balance of Payment Crises in short run, such possibilities cannot, altogether be ruled out, especially if Foreign Institutional Investors, Foreign Individual Investors, their Computer algorithm-driven Investment Programs decide to withdraw some investments. As India does not have Crude Oil Reserves, India's Oil Imports have become uncontrollable, compounded by the multifold increase in the number of bikes, cars, and trucks in the country. Import of food grains, lentils particularly Red Gram dal splits, onions, raw sugar for processing by Sugar Mills etc. have become nearly unavoidable to control domestic shortages, black-marketing, and spiralling rices.

Here is a link to RSTV (Rajya Sabha TV) report which deals with import of lentils etc. by India. Click here to go to RSTV website and study the steps taken by Government of INdia to import of essential goods, and to control black-marketing by traders. A few lines from the Report are worth noting:--

Date 1:04 PM, 19 Jun 2016

About 5.5 million tonnes of pulses were imported last fiscal, largely through private traders. The move comes as the prices of pulses have continued to soar and reached Rs 200 per kg in retail. Various central agencies and the Income Tax department have been conducting raids across the country for some time to check hoarding.

So far, 14,000 raids have been conducted and over 1.33 lakh tonnes of pulses seized in past few months, the sources said.

The rise in prices of pulses is due to demand-supply gap. As per an estimate, the demand is of 230-240 lakh tonnes whereas the supply is about 170 lakh tonnes.

With each passing year, there is an increase in demand of pulses by one million tonnes, thus making imports necessary. The possibility of black marketing and illegal trading cannot be wished away as hoarders try to exploit the situation to make profit, they said.

Views of ybrao-a-donkey which are not intended to be imposed on others

Why Political Parties cannot identify their own Party Members who engage in Hoarding and Blackmarketing?

If political parties can identify the traders who are engaged in hoarding and black-marketing of food items, both domestically produced and the imported stocks, and expel them from their parties, the Political Parties will get cleansed. Once the black-marketeers lose political patronage, it will become easy for Officials to book cases against Offending Traders.

To continue adding/ deleting/ modifying. सशेष. ఇంకా ఉంది.

784 What a shame for a country which claims to become No. 2 or No. 1 Economic Power in the World?

I can never forget Retd. Supreme Court Justice Markandeya Katzu

"...90 percent of Indians are fools. ..."

"...what I meant was that an overwhelming number of Indians were fools. Therefore the figure might be 85 per cent, on the other hand it could be 95 per cent."

"...90% of Indians are fools ...".

"...what I meant was that an overwhelming number of Indians were fools. Therefore the figure might be 85 per cent, on the other hand it could be 95 per cent."

There was substantial criticisim against the comment of Justice Markandeya Katzu. It is not clear whether h has included himself in the 90% fools bracket, or in the 10% wisepersons bracket. There is a need to divide the 10% wisdom category into 2% very wise, 3% ordinarily wise, 5% neither wise nor foolish- a sort of noman's land's dwellers. Anyway, Justice Katzu apparently withdrew his comment under pressure.

Yet, there are very very valid reasons to believe that 90% of INdians are fools, while there can be a similar percentage of fools-wisepersons- and noman's-land-dwellers, even in other countries and other Nationalities.

OUR PRESENT SUBJECT: IMPORT OF RED GRAM LENTIL SPLITS FROM MOZAMBIQUE, for the NEXT FIVE YEARS

India has been an agricultural country, since the advent of human civilisation. We were cultivating legumes and lentils of umpteen varieties including redgram, blackgram, greengram, horsegram, as sources of protein, though farmers were themselves not knowing their nutritional value. We were also growing myriad varieties of oil seeds including groundnuts, mustard, sesame. They were all part of our eight wealths (ashTa lakshmis), nominated as Wealth of Harvested Crop (dhAnya lakshmi).

WHOM ARE WE GOING TO BENEFIT? MOZAMBIQUE FARMERS? OR THE Euro-American-ANZ MNCsTRADING IN COMMODITIES?

Today, we have reached a stage, where we survive on imported pulses and oil seeds. We are purchasing tuwar dAl (kandi pappu in Telugu) from a South African country like Mozambique. While I am very glad that we are providing some sustenance to the African farmers, distinctly an opposite action as hitherto of supporting the Euro-American-ANZ Multi Nationals. Even now, of course, the actual supplies and trading may be done by the Euro-American-ANZ MNCs, while paying a pittance to the Mozambique Farmers. We shall take up this subject of exploitation of Africa by Euro-American-ANZ MNCs later.

Question: Are we going to gradually cease cultivation of oilseeds and pulses?

Ans: It appears so. The Government takes pleasure in importing pulses and oilseeds, throwing away foreign exchange reserves accumulated by getting foreign investments into Indian Companies owing prime City Properties. They will also bring pressure on the State Governments to place their indents for their needs of imported oil seeds and pulses.

Whatever be the reason, the imported oilseeds and pulses arrive exactly during the same period, when Indian harvests of oilseeds and pulses arrive into the mandies and markets. Imports depress the purchase prices in the mandies, and the oilseed and pulses farmers get a pittance for their hard labor of one season. Sometimes, it may happen the importers of oilseeds and prices , - and the mandi trader-buyers-commission-agents of oil seeds and pulses may be same fellows. Hence, it results in jacking up of purchase prices in harvest season, notwithstanding the announcement of MSP (Minimum Support Prices) by the Government of India, and the respective State Governments.

Once, all the Indian farmers sell their produce for a pittance, the Mandi Traders and Importers shift all their stocks to black markets, gradually creating scarcities and raising the prices at their will and pleasure. The Government say that they place maximum limits on stock holding by the traders, that they conduct periodical inspections, that they seize stocks from blackmarketeers etc. etc., but nothing really helps the consumers.

Consumers also pay jacked-up prices to blackmarketeers. If there is any arrangement, whereby the consumers buy their needs from the farmers direct without the intervention of blackmarketeers, there might have been some relief both to the consumers and the farmers. To continue.

Question: Is it correct that whenever India enters international markets to import commodities such as oil seeds, pulses, and sugar, their international suppliers jack-up international prices?

It happened several times in the past. There are occasions when India exported sugar at lower prices first, and when there are domestic shortages, imported sugar at higher prices, incurring losses on both the import and export legs DURING THE SAME YEAR. Owing to jugglery with figures by merchants and officials, estimate of domestic stocks, domestic surpluses and domestic shortages have become a farce.

Question: What is wrong with the present method of depending on imports, as a tool for controlling inflation?

Governments-- both UPA and NDA, have been resorting to imports, to show to the people that inflation is under control. This will be a problematic and risky way of controlling inflation, because 1. Balance of trade adversity goes up. 2. There will be strain on Balance of Payment, Current Account. 3. Govts. will be forced to canvass more and more for foreign investments, liberalising and opening up the entire Indian Economy to the mercies of the foreign institutional investors. This is a certain and definite method to lose our economic sovereignity.

To continue. सशेष. ఇంకా ఉంది.