The Wadhwa Committee pointed out that some Rs28,000 crore subsidy annually spent by the government was pocketed by vested interests. Nothing much has been done, except to let the foodgrain rot in the poorly built warehouses!

Everyone is looking up the sky to seek the help of rain gods for the monsoon to arrive. We have repeated assurances from leaders and weather scientists that “it is due anytime now” for the crop-sowing season, and “not to worry too much”. Such vagaries of the rainfall continue to play havoc in India.
 
In an estimate made by the World Food Programme, almost 25% of the world’s hungry people live in India. Which means some 200 million people or one-fifth of the population are hungry and starving for food and somehow eke out a living.
 
If statistics are to be believed, most of them unreliable anyway, but still form a basis for facing the reality, millions of tonnes of foodgrain are lost, wasted, damaged and are unfit for human consumption due to a variety of causes.
 
The PDS (public distribution system) established to ameliorate the living conditions of the poor people living below the poverty line (BPL) is in shambles.  A committee appointed by the Supreme Court, headed by former SC judge, justice DP Wadhwa, described the PDS as “inefficient and corrupt”.
 
The report highlighted that the system was plagued by black marketing and unofficially run by a “vicious cartel of bureaucrats, fair price shop owners and middlemen”. It would be truly interesting to find out how the shop owners are given the ‘license’ to run the “ration shop” as they are popularly called. A detailed study would indicate the political nexus of the vested interests.
 
The report also pointed out that some Rs28,000 crore subsidy annually spent by the government was pocketed by vested interests and suggested stern action to stem the rot.  Nothing much has been done, except to let the foodgrain rot in the poorly built warehouses!
 
What is really happening?  In most production areas, since there are inadequate and poor storage facilities, foodgrain, packed in poor quality sacks, are kept in the open for the rodents to feast, while people starve. Rain or sunshine the grains get damaged, rot and are unfit for consumption.  Such criminal wastage goes unreported and unpunished while the poor go hungry and scavenge for food. Every year at least 20% to 30% of the foodgrain produced go waste in this manner.
 
According to statistics available, there some 492 warehouses in India; two-thirds of the foodgrain are kept in government’s own construction; one-sixth is kept in the open and the remaining in hired facilities. These are neither adequate nor fully suitable and weatherproof to prevent rotting and other types of damages.
 
Whether the godowns maintained by the FCI (Food Corporation of India) are complying with above essentials is a debateable question.
 
Recently there was a media and public outcry that instead of letting the foodgrain go waste in this manner, the government must give it away to the poor and the needy. A rough estimate says that one million tonnes of foodgrain would take care of ten million people for the whole year.  Petitions were made to the food minister. What happened? Nothing, as usual and somehow, the issue was lost in the maze of other political chaos.
 
From a bowl in hand and seeking food under the PL-480 Programme India has come a long way, to become a net exporter. But, are we taking advantage of this progress? No. Apart from letting millions starve, decisions on export are subject to whims and fancies of the government as we have consistently inconsistent policies of banning and allowing exports on the pretext of protecting the “aam aadmi”.
 
Overseas buyers cannot be subject to uncertainty when they have others ready and willing to offer the same products in competition. Whether it is onion to the Middle East or cotton to China, the importer needs have to be supplies in an assured manner. Our export bans also affect the shipping industry.

It is essential that the Central Warehousing Corporation, set up in 1957 and operating only 469 warehouses, with a storage capacity of some 10 million tonnes should be directed to increase or create additional capacities in production areas; modernize them and also ensure that they have good transportation facilities at their disposal for movement of goods. We need to learn and implement better management systems of control and overcome the current lethargy, inefficiency and eradicate the corrupt practices that are visible.
 
All these are sad state of affairs; it also makes us wonder if these facilities are covered by insurance of any kind?

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US. He can be contacted at [email protected].)