Food crisis has hit the whole world not just India.
Reasons : Forward Trading of foodgrains & essential commodities, Monopolies and BioFuel
#Reason 1 : It has been discovered by finance capital that the most lucrative speculative trading is not in stocks but food. Forward trading of foodgrains attract large capital just for the sake of short term gains. The buyers are never the consumers - they buy million sof tonnes of grain and sell and make profit. This is one major origin.
Response needed : Ban forward trading for a few months.
#Reason 2 : Monopolies like Reliance fresh and Walmart have bought milions of tonnes to stock up thus creating a deficit. Notice, their retail shops still have food grains at old price.
Response needed : Govt must control them thru market intervention. These monopolies are acting as cartels and driving up prices to take collective advantage.
#Reason 3 : Biofuel subsidies particularly in US, have lured farmers away from food grains to sugar cane. ven food items like corn are diverted from market into making biofuel.
Response : Alas, this ws predicted 2 years back. Only when it hit us many of us - the servile worshippers of "US power" - realized it. Whether India can do something to this is to be seen.
