SBI Bank Clerical Special: Special Reading 4: Dry in drought

Dry in drought
In this era of unimaginable technological developments, our agricultural system has yet again shown its fragility to the ancient rain god’s fury. The number of draught-hit districts has increased to 246 from 144 of initial figure.  The Indian Meteorological Department has declared 29 per cent deficiency in south-west monsoon. The condition of states like Bihar, Uttar Pradesh, Jharkhand, and Maharashtra is particularly bad.

Rice production may reduce by 30 per cent this year, as paddy acreage has fallen. Sugarcane, groundnut, and coarse cereals sowing have also suffered from low rainfall. Reports of at least fifteen farmers’ suicide in the last two months in Andhra Pradesh have created much alarm.
The government has however maintained that there is enough food stock. But still food pries are skyrocketing due to hoarding and speculative activities in the futures market.

The Centre has requested the States to be strict on hoarding, to improve Public Distribution System and to strengthen National Rural Guarantee Programmes. The Centre has also announced a subsidy up to Rs 7.50 per litre of diesel for irrigation. It is a classic case of reverting back to State intervention from the free-market mantra as soon as there is a crisis. However it still remains to be seen how far these inadequate supports help in a country where 66 per cent of total cultivated land depend on rainfall. The cumulative effect of drought and inflation is seen in rise in prices in essential commodities like milk, sugar etc. Last month saw retail milk prices go up by Rs one to two a litre in Delhi, Mumbai and Pune, with other cities, too, bracing for similar increases. This means a rise in other milk products too.