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.

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