Wednesday, August 1, 2018

PDS as a Great Marketing Option for Farm Products


It is seen that for the year 2017-2018 the total food grains production and pulses were around 280 million tons or so. Experts feel that this has resulted in glut with glaring gap of the products not finding proper market outlet at fair price for the farmers. Experts in India feel that this is due to overproduction as some crops were cultivated more than the available demand and hence the farmers had to suffer heavy losses.
This may look to be so as the necessary infrastructure takes time in developing and the nature of intake of nutritious food in India is not up to the standard required of such a large country. Yet there is a possibility of marketing products through different channels as I had already written earlier. One of the best available marketing tools the government has is the public distribution system or PDS which has extensive network all over the country. The government can make use of it quite easily and this needn’t be restricted to food grains only. Even pulses and other food commodities can also be marketed through this system with or without subsidy.
To cut short the essay the government can take note of the latest official circular of the WHO (World Health Organization) which had placed India among the bottom segments of countries having population with very low nutritional value in their diet. This is indeed shocking.
Naturally, on the part of the government this is also an advantage. The government through its PDS channel may resort to compulsory marketing of several of the farm products. This is especially so for population who have cards that are marked as below poverty. It is generally seen in North or South India that ration card holders go to their respective ration shops and order only sugar and perhaps wheat or rice.  They then make the rest of their purchase from kirana stores and large shops.
The government may have to just look into the quality standards and once this is taken care of lentils, food grains, pulses and other food products purchased from farmers under the MSP could be compulsorily purchased under the ration card scheme. Otherwise, the card holder has to forgo the card and lose government subsidy. This compulsory subsidized ration will by itself give a marketing outlet for products bought under MSP. Supplying of food products under the PDS scheme should be according to each person in a family and not just for family. This means for example each person in a family would need to purchase say 5 kg of each item compulsorily. Otherwise, the person has the option to purchase the same from the supermarket or other stores, but lose his subsidy and the ration card. The required quantities of each item could be arrived at after meeting with experts in the respective areas.

Here itself millions of tons of food grains can be sold off with ease all over the country. The government can easily cite the reason that the people are not having proper nutrition. Another thing one can easily see here is that the production level of the country with respect to food grains is not sufficient for the population. This is because if each Indian citizen starts to take 3 meals a day then there will be shortage of most food products. Besides, one shouldn’t forget the restaurants, hotels, food courts, and instant-foods, way side inns, eateries on wheels on the National Highways and occasional coffees and teas with bites that many Indians would like to consume in the not too distant future. If this is so then India would need to produce not less than 450 million tons of food. Millions of Indian who can afford already has several snack intervals and a major tea time in the afternoons. As for health and obesity and BP there are other supply chains like nutritionists, psychologists, yoga experts and medical experts and so on who will study each individual and advice for the same. After all we are running an economy and not a spiritual center. 

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