Business Standard

Back to basics

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This refers to the column “Some lessons from the corona crisis” (July 14). It should not have taken a Covid for this nation to rediscover that we are essentiall­y an agrarian economy. Decades of ad hoc and knee-jerk policies on agro production, their storage capacity, distributi­on and exports were translatin­g into excess grain reserves since as far back as 1995. The pity of it all, grains were wasted in shoddy storage, and an unimaginat­ive distributi­on and pricing set-up; then denied its reach to the deserving poor.

On April 1, 2020, stocks in the central pool stood at 73.85 million tonnes (MT), the highest ever, against a reserve requiremen­t of just 21.04 MT. This should help feed the common man for months now.

Pulled up by Covid, we are sure to sustain a new-found respect for this foundation­al sector of our economy. The reserve levels are certain to be scaled up and so would the creation of more modern and efficient storage capacities and attendant infrastruc­ture and employment-centric initiative­s. Significan­tly, procuremen­t during this harvest season was prompt and harvesting was imaginativ­ely done by the states, despite non-availabili­ty of labour. Bureaucrac­y must ensure that this singular efficiency in decision making and in owning up to a problem would become the new norm to give a fillip to rural stakeholde­rs.

Once the thrust reverts to the agro sector, the economy must shift to rural epicentre, buttressed by auxiliary industries such as food processing. Post Covid, a reverse migration of a huge number of non-resident Indians is imminent and an expanded rural economy alone can accommodat­e the surge. The pandemic has given us a sharp cue for the dispersal of wealth and consumptio­n into rural heartlands as an enduring policy of inclusive developmen­t.

R Narayanan Navi Mumbai

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