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On July 1, the government may have about 24.8 million tonnes of rice and 46.3
million tonnes of wheat. So, extra allocation of wheat and rice to drought hit areas
can easily be made by the Centre.
Thus, food security of the drought-hit population will not be difficult to manage
through the public distribution system, arranging drinking water and fodder supply
in vast expanse of rural areas is not easy. In several districts, fodder will have to be
transported even from other states and we do not know what will happen to stray
cattle!
Low prices for most crops in the last four years were caused by demonetisation and
global downturn of prices. Private trade is reluctant to stock commodities as it sees
little chance of rise in prices. Keeping the Essential Commodities Act in abeyance
for three years may help in getting private trade back in mandis, which can help lift
prices there.
Water woes
For the long-term, the new government will face three major challenges. First, how
to fix the water woes of perennially drought-affected regions. Pradhan Mantri
Krishi Sinchai Yojana (PMKSY) was supposed to enable completion of 99 projects
by 2019, but command area works have been completed in only six projects.
How have government policies contributed to this crisis?
The government’s functions can be understood from its two roles – (1)
investing and incentivising activities or products required for the greater
good; and (2) regulating activities which may have negative impacts.
However, presently, it has failed in both.