Manufacturing India-Car

With a sustained labour cost advantage and a working population estimated to top 850 million before the end of the decade, India is destined to become the second most competitive manufacturing destination globally, leaving behind countries like the US and Germany.

The new National Manufacturing Policy is to help the Indian manufacturing sector increase its share of the country’s GDP from 15% currently to 25% by 2022. It will require a compound annual growth rate of 14%, raising the sector’s total output to approximately $650 billion by 2022, and making India the world’s fifth-largest manufacturing nation, up from ninth currently.

India today has one of the least skilled manpower among the top manufacturing nations. Firstly, only 17% of those entering the workforce are skilled. Secondly, the quality of skilling remains a big challenge—amongst the skilled workforce, a mere 5% of workers are classified as highly skilled, and a staggering 64% are associated with a very low level of skilling. As a result, despite having a seemingly limitless supply of low-cost labour, over 65% of Indian firms face difficulty in filling vacancies with rightly skilled workers.

Some manufacturing sectors in India such as automobiles and Pharma are already well on the way of becoming globally competitive.

The automobile industry account for 22% of the country’s manufacturing GDP.

According to Ministry of Heavy Industry and Public Enterprises, the total turnover of the Indian automobile industry was estimated at USD 73 billion and exports were estimated to be USD 11 billion in the year 2010–11. The announced cumulative investments in this sector were USD 30 billion during this period. The main automobile clusters are based around Chennai, Gurgaon, Pune, Ahmedabad, Aurangabad, Jamshedpur, Greater Noida and Bangalore. Chennai is the biggest hub accounting for 60% of Indian auto exports.

While Maruti Suzuki is still at top of the market share, Hyundai, Tata Motors, M&M, Honda, GM India, and Mercedes Benz are also major players. Nissan, Renault, BMW, and Fiat are also present.

World’s almost all auto manufacturers have set up plants in India. Volkswagen and Skoda in its facilities in Aurangabad and Chakan are producing top ends and mass market models respectively.

Ford India is setting up its second plant at Sanand for the plant, its second in India, in September 2011 and laid the foundation in March 2012. The Rs 4,500-crore plant will have an initial capacity of 240,000 cars and 270,000 engines. Its first plant near Chennai has a capacity for 200,000 cars and 340,000 engines. Commercial roll-out of the first vehicle will happen in the first half of 2015.

India automobile sector has grown significantly over the years. It can develop the cars that the people are looking for. The quality of the products is pretty good. If an automobile sector is any indication of the manufacturing strength, India is certainly a manufacturing power.

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Dear Mr. Chidambaram: A Reminder

I respect you as one of the best performing cabinet ministers and parliamentarians.Your speeches are so interesting and assuring. So I would have loved if you could have kept up the promises you made in your budget speeches. It would have enhanced your credibility. I am also one who wish to see you as prime minister even if Gandhis select you following the Sonia-Manmohan model.

Let me take you to the Budget of 2004-05 where you as finance minister had said, “I now turn to one of my big dreams. Water is the lifeline of civilidation. We have been warned that the biggest crisis that the world will face in the 21st century will be the crisis of water.”

“I therefore propose an ambitious scheme. Through the ages, Indian agriculture has been sustained by natural and man-made water bodies such as lakes, tanks, ponds and similar structures. It has been estimated that there are more than a million such structures and about 500,000 are used for irrigation. Many of them have fallen into disuse. Many of them have accumulated silt. Many require urgent repairs.”

There were some water bodies all around my village too, but most of them have disappeared, filled and encroached for either construction or cultivation. The entire nation got excited with your proposal to launch “a massive scheme to repair, renovate and restore all the water bodies that are directly linked to agriculture”.

Was the proposal implemented? If not, why couldn’t you follow it up?

I shall remind you about your second promise in the 2004 budget speech. That related to a proposal to facilitate all ITIs to be adopted by some companies to make its training and skilling relevant so that the industry get trained and skilled young men and women ready to take up responsible position.

How many of ITIs of the total in India have tied up with industry?

Can your office publish a white paper on just these two promises? How will rate yourself on the implementation of these two proposals?

How can the country develop if promises are not kept? I am sure the failure to execute both the proposals were not due to lack of fund.

Mr. Chidambaram, we expect you to take the country out of the present financial gloom. It can happen only if the government works.

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School Cheating: Lessons from Atlanta

I have been contemplating to suggest some ways and means to motivate the school teachers of rural government schools for performing better and to devote time and energy in teaching their students. Even after providing for the infrastructural shortcomings of the schools such as separate clean toilets for boys and girls, facilities for clean drinking water, library, creativity centres, and playing grounds, the students will hardly be benefitted unless they take up their assignment seriously. Even the incentive for improving their performance can’t be made that lucrative. And unfortunately, because of the very strong unions of teachers, they can hardly be punished to the extent that corrects them.

Interestingly, even the developed country such as USA is facing a serious situation with its teaching staffs. USA tried to use the famous trick of carrot and stick for improving the performance of their school teachers.

As the Times explained: “Teachers and principals whose students had high test scores received tenure and thousands of dollars in performance bonuses. Otherwise, as one teacher explained, it was ‘low score out the door.'”

Anand informed me about the American taking actions against a large number of teachers involved in cheating for improving the performance of the students of their schools so that they can earn higher performance bonus. It was a great news item in US disturbing the parents who do everything to find a good school for their children. It shocked me too, as in every visit to US, I have been visiting the schools of my grandchildren and putting a lot of queries to my sons about their education. I was happy that my grandchildren will get real good education that I couldn’t have dreamt even in India.

A grand jury charged Dr. Hall, the school superintendent and the other educators with essentially running a conspiracy in which standardized test scores were secretly raised as a way to get bonuses and ensure job security.They had been told to report to jail.

If the carrot and stick couldn’t work in US, will it serve any purpose in a corrupt country like ours?

I had heard of cheating through passing on the chits with answers to the examinees inside the examination halls in board examinations in Bihar. But what had happened in Atlanta is a step ahead. Cheating by the whole lot of teachers, principals and administrators was to have better performance of the school and thereby earning bigger bonuses.

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Aakash Again in News

Aakash is again in news. Media reports of the two cabinet ministers are interesting and show how this government is working.

Pallam Raju, the new HRD Minister, who is an alumnus of IIT, expressed concerns over the future of Aakash that appeared in media. The next day IT and Telecom Minister Kapil Sibal, who had launched Aakash as HRD minister, declared the project for the low-cost computing device, Aakash as “alive and kicking”. He had added that the work is on for its third and fourth versions. Pallam Raju again corrects his statement the next day and talked about the continuance of Aakash project.

I felt really bad after going through a blog in Forbes India by Seema Singh: “As Mint reports today, the HRD ministry, whose ridiculously naive idea it was, is close to shutting down this project. Yes, merely a project is what it was, pursued by some for their grubby little self-interests. That the ministry under Pallam Raju has decided to consign it to the bin, a place where it always belonged, it will bring a closure to this murky story. At Forbes India, we gave it a decent burial nearly a year ago. The story, What Went Wrong with Aakash Tablet, details how the idea was “stillborn” and no amount of clinical intervention could revive it.”

Why should some celebrate failure of a project of an India innovated product that could have made difference in educating millions of the poor India with help of a digital gadget? However, some were very positive and talked pretty highly about the project.

A well written article of Vivek Wadhwa, vice-president, research and innovation, Singularity University; fellow at Stanford Law School, and a director, research, Duke University, appeared in the Mint, ‘In Praise of Aakash. “Aakash has lowered the expected base price of tablet technologies from the $400-500 that is common in the West to $35-50. This would not have happened on its own.”

And then appeared another column of Satish Jha, chief mentor, Indian Centre for CSR, and chairman, OLPC India Foundation,- ‘Aakash-Cheapest tablet far from real’ in the same Mint-“If there is any nation that deserves the credit for making the cheapest computer, in more sense than one, that is China”.

I have been following the media for Aakash since its launch. I have a serious grievance about the IITs that were associated with this project, particularly IIT, Rajasthan and now IIT- Bombay. The professor/s associated with Aakash would have written in media to clarify the controversies in media. It would have removed the confusion. Can’t IITs do even this much? Is it not a shame that these institutes of national importance fail to mentor even one project such as Aakash. Why India and Indians are like one narrated in this report?

I would have loved if those connected with such gadgets in the industry would have suggested ways and means to save the project Aakash. Can it happen?

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Tacitus and Chanakya

Chanakya was one of the most quoted Indian thinkers of ancient India by Indian politicians in parliament and outside. But very lately perhaps Chanakya started appearing a little too much Indian, and may be some crancky ones might be thinking to color him saffron or Manubadi one day. Perhaps Chanakya was too much a known name to parliamentarians. As usual, they wanted to switch over some to all from Western history to impress the peers. And they did in last session of parliament. He was Tacitus.

“Interestingly, both Prime Minister Manmohan Singh and the leader of opposition, Arun Jaitley chose to spar in the Rajya Sabha recently with quotes from ancient Roman Senator and historian Publius Cornelius Tacitus. Most of their listeners had little or no idea who they were quoting from. Tacitus who? Some of the more curious MPs turned to the Internet and did a quick Google search to know about the man who probably figured in the Indian Parliament for the first time.”

“Interestingly, it was Google that provided both the PM and Jaitley with necessary ammunition. Their research teams simply punched “Tacitus quotes” into their computer and came up with a list of his famous lines, most of which are as relevant today as they were 1900 years ago when he penned his histories of the Roman Empire. Jaitley was the first to fire. Wrapping up a scathing attack on the Manmohan Singh government during the debate on the motion of thanks on the President’s address, Jaitley said, “A non-performing and a corrupt government can inflict huge damage to a country. This is best expressed in the words of Tacitus, an ancient Roman Senator who said: ‘They have plundered the world, stripping naked the land in their hunger… They ravage, they slaughter, they seize by false pretences and all of this they hail as the construction of an empire. And when in their wake nothing remains but a desert, they call that peace. ‘”

The PM has now a good team from media to help him. His media managers immediately switch on the computer. After a quick Google search, they came up with a stunning riposte to be used by their boss in reply. And Manmohan Singh hit back at Jaitley. “Since he is so obviously fond of Tacitus, I hope he will not mind if I quote some Tacitus back at him. Tacitus also said, and I quote: ‘when men are full of envy, they disparage everything, whether it be good or bad.’

Jaitley was taken aback by the quick-witted counter, enough to Google Tacitus quotes again. As reported, he’s found a response which he is saving to use on a rainy day: “To show resentment at a reproach is to acknowledge that one may have deserved it.” Clearly, there is an armory of Tacitus quotes to suit every occasion. Long Live Google!

I wish my readers may suggest some more names from ancient history to the parliamentarians to quote and to impress their peers and people. Are not politicians switching over to ‘foren’ for ideas? The country men wish them to be with Indians.

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एक पुरानी कबिता: केशव के लौटने के बाद

बड़े सकारे सपना देखा
हाथ बढ़ाये,मुस्काते तुम
ठुमक ठुमक तुम
आते हो मेरी बाहों में
तुमको पाकर सबकुछ पाता
सपने में ही
तुम हंसते हो, मैं हंसता हूँ
हंसी हमारी भर देती
सारे आंगन को
तुम्हे देख मैं सब भूला
हूँ,दर्द तुम्हारे आने का
मां की ममता तज ।
नींद खुली जब
खाली बिस्तर
खाली सब घर
फिर मिली को साथ लिये
जब निकला घर से
सम्मूख पूरा चाँद खिला था
रात चाँद की विदा घड़ी थी
मैंने तुमको हंसते देखा
उस परात पर
तरह तरह के रंग बदलते
तुम ही तो थे
आसमान में
खड़ा हूआ मैं अलसाया सा
सद्य स्वप्न की याद लिए
अपनी आँखों में
तुमको देखा
खिलखिला कर हंसा
तभी रज्जू की उस तनाव ने
नभ के सारे चित्र मिटाये
निरव सड़कों से होकर मैं
बहुत दूर तक
बहुत देर तक
भटका था मैं
तभी निकलते सूरज के गोले में
तुम्हे बिहंसते देखा
ठगा रहा गया
कंहा कंहा हो कुछ बतलाओ
आओ हाथ पकड़ लो मेरा
अंगुली से बढ़ कर कंधे पर
तुम तो मुझे सहारा देना !

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India: Some Data on Healthcare

Healthcare and education facilities still are dismal and nightmarish in rural India. Even if one has strong emotional attachment to his or her sweet village home in rural India, he or she can’t execute the call of the heart because of almost totally missing healthcare facility that is the cause of many avoidable deaths. Who will like to go for a suicide because of certain love of a place? At least this is the condition in all the villages I know in Bihar even after nine years of Nitish Kumar rule.

1. India spends around 5.9% of GDP on health care. The country’s health care industry is estimated to be worth around US$65 billion, is growing at a 15% compound annual growth rate and is expected to be a US$250 billion opportunity by 2020.
2. The primary health care sector in India is around US$39 billion in size. The country has around 26,000 government-run primary health care centers and 615 district-level hospitals.
3. There are around 200,000 privately-owned general physician clinics, mostly single physician with basic MBBS qualification, in the country.
4. Around 80% of the population in India turns to private care-providers and more than 75% of their health care spending is out of their own pocket.
5. Hospital admissions reduce by 40% and health care costs reduce by 30% if a country’s primary health care system is strong.
6. The capital expenditure required to build a typical clinic costs anywhere from US$30,000 to US$45,000 or more, while operating costs are upward of US$2,500 a month.
7. By 2020, the average Indian will be only 29 years of age, compared with 37 in China and the U.S., 45 in Western Europe, and 48 in Japan. India will experience an age advantage for at least three decades, through 2040.
8. There are 328 million pregnancies every year, but we see 56,000 maternal deaths.
9. Only 30.80 per cent of rural households have access to tap water. About 22 per cent of rural households have to fetch drinking water from sources that are more than 500 metres away from their premises.
10. The public sector actually provides only about 20% of actual care services. Several infectious diseases and vaccine-preventable childhood diseases still contribute 30% of the disease burden in India as measured in “disability adjusted life years lost.”
11. India has the world’s greatest burden of maternal, newborn and childhood deaths. India also has the greatest number of undernourished children.
12. Healthcare expenditures exacerbate poverty, with about 39 million people falling into poverty every year as a result of such expenditures.
13. As much as 80% of Indian healthcare is privately provided, and that care is increasingly funded by insurance programmes.
14. Financial protection against medical expenditures is far from universal with only 10% of the population having medical insurance.
15. Aarogyasri Health Insurance scheme in Andhra Pradesh has networked 241 private and 97 government hospitals to provide cashless treatment of 938 hospital procedures for more than 70 million people. The government pays the premium of R439 per family per year and there is no co-payment by the families.
16. In twenty years, the cost of heart surgery has come down by nearly 50%.But this care is reaching perhaps less than 20% of the population. 80% of people really do not have such access. A few hospitals have sufficiently large infrastructure to do about 30 to 35 heart surgeries a day. According to Dr. Devi Shetty, last year they implanted the largest number of heart valves in the world – so the valve companies give us a better price on the valves.
17. In the past five decades life expectancy has increased from 50 years to over 64 in 2000. IMR has come down from 1476 to 7. Crude birth rates have dropped to 26.1 and death rates to 8.7.
18. Only 48 per cent of the 1.35 million beds are functional and relevant and about 65 per cent of these are located in the top 20 cities.
19. The most optimistic estimates put this number at less than 5 lakh. More than 65 per cent of the operational beds are in the private sector, and more than 80 per cent of the spending on healthcare in India is accounted for by the private sector even though over 65 per cent of India’s population is below the poverty line or living just on its fringes. No wonder that on an all-India basis, an Indian has to travel an average of 77 km to access basic secondary care services.
20. Heart diseases, diabetes, and cancer are expected to show a combined average decadal growth of 47 per cent in future.
21. India has only 0.6 doctors per 1,000 people, and the majority of the practitioners are based in urban areas. In addition, Indians cover 75% of their medical expenses from their own pockets, rather than with insurance.
22. Citizens in India spent Rs 1,650 billion, or 3.16 percent of the GDP (in 2011-12), on health care, whereas the government spent only 1.04 percent.In other words, a family of four spends nearly Rs 10,000 per year on health care. “Surprisingly, hospitals are treated on a par with the entertainment industry for tax calculation. We have a shortage of more than 1 million doctors. But we make such stringent rules in running a medical college that no one can start medical colleges in this country; even if one starts, it costs over Rs 200-300 crore, whereas anywhere in the world one can start a medical college with any building. They don’t need 25 acres of land and teachers retiring at 60,” said Dr. Setty, the famous cardiologist.
23. Today, a nurse who has worked in hospitals for 20 years cannot give a paracetamol tablet legally. Doctors such as Devi Shetty are speaking about some change in regulation for alternative medical specialists and nurses can look at primary care for almost a decade, everyone thinks it’s a great idea, but nothing happens in reality, because medical lobbies are very powerful.

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Indian Farming- Diversifying for Growth

If you wish to see how vegetable farmers or fruit growers of the country are changing their course and producing many new vegetables and fruits that were seen only in foreign countries, visit some Safal outlets or some weekly bazaar. Many a times, I get confused if the items are imported because of the opening of the market due to globalization that we all have accepted.

As per National Horticulture Database 2011 published by National Horticulture Board, during 2010-11 India produced 74.878 million metric tonnes of fruits and 146.554 million metric tonnes of vegetables. The area under cultivation of fruits stood at 6.383 million hectares while vegetables were cultivated at 8.495 million hectares. As reported, during 2011-12, India exported fruits and vegetables worth Rs.4801.29 crores which comprised of fruits worth Rs.1779.49 crores and vegetables worth Rs.3021.74 crores. Mangoes, Walnuts, Grapes, Bananas, Pomegranates account for larger portion of fruits exported from the country while Onions, Okra, Bitter Gourd, Green Chilies, Mushrooms and Potatoes contribute largely to the vegetable export basket. Many cargo aero planes are taking the fresh vegetables to different countries every day from different parts of the country.

A large number of progressive Indian farmers are diversifying according to the need of the domestic as well as foreign market. Indian orchards are now growing Kiwis and passion fruits and exporting them. They are negotiating to lower import duty in Europe for a particular variety of bananas – Grand Nain to be competitive. This long, yellow variety is now replacing the traditional ones such as Basrai across the country.

The export list is growing lengthy with all types of crops – broccoli, baby corn, sweet corn, red and yellow capsicums, pomegranate, onions, garlic, potato powder and gherkins. “There are several things which are produced just to meet the export demand.” The Corporate India through contract farming has come to assist the farmers in different ways from providing the inputs to marketing.

According to data in the latest Economic Survey, between 2000-01 and 2011-12, wheat and rice production rose 35% and 22%, respectively. While the spurt in cotton output jumped 3. 7 times, potato production has more than doubled. Similarly, there was a 75% jump in fruits and vegetable production and milk production saw an over 50%
rise. Even laggards such as pulses and oil seeds have seen an increase
of around 60%.

While India is the world’s largest milk producer, it is the second largest fruit grower behind China. Within fruits, it is the largest producer of bananas, accounting for almost 30% of the production. In case of vegetables too, India ranked behind China but the gap was huge, the data revealed.

While India is the world’s largest milk producer, it is the second largest fruit grower behind China. Within fruits, it is the largest producer of bananas, accounting for almost 30% of the production. In case of vegetables too, India ranked behind China but the gap was huge, the data revealed.

Globally, farmers get around 50% of the shelf price. In India the level is around 20-30 %. But that share is slowly increasing.

India has a great potential in improving scale of production through better labour productivity, better yield and cheap mechanization.

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Farming India-Some More Data

In 2011-12, Nitish Kumar not the chief minister but a farmer from Darveshpura village in Nalanda in Bihar produced 224 quintals (22. 4 tons) of paddy in a hectare using the system of rice intensification (SRI). Kumar shattered the world record of 194 qt/ha registered by China’s ‘father of rice’ Yuvan Longping. However, the Chinese didn’t recognize the same.

Rakesh Kumar of Sohdih some kms away in Nalanda produced 1, 088 qt/ha of potato this year breaking the world record of the Darveshpur farmer Nitish Kumar whose potato yield last year was 729 qt/ha, taking the record from a Dutch.

A revolution of sort is going on in the agricultural fields in different parts of India. Here are some interesting data about India:

About 60 per cent of Indians earn their living through agriculture.

More than half of India’s population spends more than half of its income on food.

Agriculture is the key to over 600 million people that half the population of this country.

Agriculture contributes only about 14 per cent to India’s GDP. Over 600 million people are engaged to produce this.

Agricultural growth has improved from an average of 2. 7 percent in 2002-2007 to 3. 6 percent in 2007-2012.

Just 2. 5 per cent of households in rural areas operate almost a third of the land. 80 per cent of households operate less than a hectare of land each. This includes some 45 per cent of the total who are landless.

A recent estimate says that in the five decades since Independence, 3. 68 million hectares (ha) land was declared surplus under land ceiling laws, of which 2. 3 million ha were actually taken over and 1. 8 million ha distributed among roughly 5 million beneficiaries.

Recent agricultural census data shows increasing fragmentation of land with the number of marginal farms (0. 5 to 1 ha) zooming up by 143 per cent, and the small farms (1 to 2 ha) going up by 82 per cent between 1970-71 and 2010-11. Large farms (> 10 ha) declined by 39 per cent in the same period.

56 per cent of food grains are produced from 47 million hectares (Mha) of irrigated land while the rest – 44 per cent – is produced from 95 Mha of rain-fed land. Food grain output could double simply by making available adequate and timely water for crops.

The country has an ultimate irrigation potential of about 140 Mha. Till the end of the Tenth Plan, over 21 Mha still remained to be developed. Shockingly, utilization efficiency of irrigation has dipped from 1 (full utilization) in 1951 to about 0. 83 currently.

Since 1996, Rs 45, 552 crore have been spent on 96 projects that are lying in different stages of incompleteness. Estimated costs for completing them would go up by 35 per cent.

In 1980-81, gross capital formation, GCF in agriculture was about 11 per cent of the agriculture GDP. In 1980-81, public and private investments in agriculture were about 50 percent each.

By 1996-97, GCF as a share of agricultural GDP had dropped to just 8 per cent. It revived after that and touched a high of 20 per cent in 2009-10, and is currently hovering around that mark. But there is a change in its composition: public investment component is down to just 25 per cent and private investment is up to nearly 75 per cent.

India has very low productivity or yield in food grains. China produced about seven tons of rice per hectare – nearly double the amount produced in India. The US produces nearly eight tons per hectare. In wheat, India is able to manage about three tons per hectare, compared to China’s five, France 6. 5 and Germany’s seven tons per hectare.

India now produces quality ingredients for Italian cooking such rucola and even a range of culinary herbs such as fresh basil, rosemary, thyme, marjoram, etc. A farm in nearby Chattarpur had seeded a crop of Italian tomatoes and the first ever organic San Marzano is also grown in India.

For example, Usha Farms in nearby Bijwasan has recently introduced a range of superb exotic mushrooms, like shiitake, shiimeji, portobello and oyster. In Punjab (around Nabha) and Himachal Pradesh (in Palampur), farmers have started growing 15 different crops, including Tuscan black cabbage, the gourmet green mache, beef steak tomatoes, micro cress and celery, amongst others

And Spaghetti Kitchen has tied up with farmers in Himachal Pradesh for herbs, vendors in Pune for vegetables and sources in Orissa for prawns from the Chilka Lake.

And for something about the entrepreneurial Indians, many Indian farmers are investing in and tilling fertile tracts in countries as far afield as Georgia, Ethiopia, Kenya, Madagascar, Bolivia and Uruguay. Probably about 4, 000 farmers, mostly Sikhs from Punjab, have invested in farmland in Georgia.

Is it not an impressive saga of Indian farming?

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The Great India Farming

I have the personal bitter experience of the scarcity of food grains in ‘50s and 60’s when in Calcutta we lived on imported poor quality wheat and coarse boiled rice from the ration shops. Nothing was available in open market. My grandfather used to tell us that those were meant for cattle feed in the countries of origin.

India has certainly changed over the years. All types of food grains are easily available in open market. Even the cheapest one is worth entering our kitchen when I have been very selective.

The India farmers are producing everything in surplus and exporting in huge quantum. If the government could arrange water though corruption free irrigation projects, India could feed all the hungry mouths of the world. However, because of poor policy, there are instances of huge wastage of huge amount of food grains. I wonder if the creation of suitable warehouses for food grains such as wheat and rice is rocket science. Why can’t the government make it a zero loss by wastage a target by the end of say any calendar year?

But I am writing this note to convince Mr. Chidambaram and Manmohan Singh that the right management of food grains with sufficient not excessive buffer can cut down some of their deficits that they bothered with. Here are some data to base my views:

1.Commission for Agricultural Costs and Prices’ chief Ashok Gulati’s projects that agriculture export of India could touch $42 billion in FY13 has to come as a great relief—that’s a 13.5% increase over FY12’s mammoth $37 billion.
2.The agriculture export increased more than 10 times from $3.5 billion in FY91 to $37.1 billion in FY12, growing at an annual rate of 13.6 percent.
3.The agricultural imports have also grown faster, from $0.7 billion to $17.2 billion, but still surplus for the country is around 20 billion dollars.
4.India’s share of global agricultural exports rose from 0.8% in 1990 to 2.1% in 2011, a share which is higher than that of global merchandise exports—this rose from 0.6% to 1.7% in the same period.
5.India can export 10 million tonnes of wheat more that can fetch $3 billion to the exchequer. And, since FCI stores around 16-17 million tonnes of grain out in the open (covered by a tarpaulin of uneven quality), not exporting this would just mean the grain would rot.
6.According to Gulati’s calculations, the excess food grains stock held by FCI alone has cost the government R1 lakh crore or 1% of GDP.
7.Potential is huge if the yields are improved in some states that lag. Punjab’s wheat yields are 4,415 kg per hectare, Bihar’s are only 1,946. And that is doable.
8.The investments in the agriculture sector, after stagnating at 9.3% of agricultural GDP in FY82 and 9.1% in FY92, rose to 14.6% in FY02 and further to 20.3% in FY10.
9.The farmers have started emulating advanced nation. When Bt promised better cotton output, farmers switched to it in droves. From nearly zero in FY02, 81% of all cotton cropped was Bt by just FY08, as a result of which yields—that rose from 220 kg per hectare in the 1980s to 298 in the 1990s—suddenly jumped to an average of 443 in the 2000s; those in Gujarat, where Bt cotton first took root, averaged 582 kg per hectare in the 2000s. By the end of the 2000s, India is the world’s second-largest cotton exporter.
10.Farmers did the same feat with hybrid maize as a result of which yields rose around 30% in the 2000s.
11.This is when The Indian Council of Agriculture Research has an R&D budget of R2, 700 crore a year while a single company in US, Monsanto alone spends R7,500 crore ($1.5 billion) a year and Pioneer R4,000 crore ($800 million).
12.India has even emerged as the world’s No.1 exporter of rice (ahead of Thailand), while turning from an importer to the largest cotton shipper after the US. And the contents of export are also interesting. Till about 10 years back, this was dominated by marine products, cashew, tea, coffee and spices. But today, there are cotton, rice, wheat, maize, meat, oil-meals and guar-gum.Last year India exported 1.085 lakh tonnes of fresh grapes valued at Rs 602.86 crore. Onion exports have shown a declining trend since November 2012. Shipments fell by over 40 per cent to 83,044 tonnes in January, as against 1,47,255 tonnes in the year-ago period.
13.As on February 1, the government had over 65 million tonnes of food grains in its stock, more than double the required quantity. Of this, almost half was wheat. The floor price for private traders for the export was fixed at Rs 1,480 a quintal ex-Punjab.
14.To clear bulging grain stocks, a group of ministers (GoM), headed by Agriculture Minister Sharad Pawar decided to allow export of an additional five million tonnes (mt) of wheat from the Central pool.
15.And when I come across the farmers experimenting new means to improve the yield, I realize India can’t remain behind China. A recent story of the Chinese not believing that Nalanda farmer produced rice paddy more than the Chinese, was really interesting.

And visit a good vegetable shop, you can find all new produce such as baby corn, broccoli, mushroom, and coloured capsicum. It has just started, the future is bright.

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