Thursday, June 05, 2008

Speculators in food - NYTimes.com

http://www.nytimes.com/2008/06/05/business/05farm.html?_r=1&partner=rssnyt&emc=rss&oref=slogin

This proves India's agricultural strength is key to its success.

However, I am very weary of Wall Street investing in agriculture - the focus will be on ripping out as much productivity in as short a time as possible. It will included introduction of more genetically modified foods in the chain - with god knows what consequence.

One way for India to really compete is to open a food-oil exchange for its extra agri-stocks i.e. offer to sell it's agricultural surplus for oil. This will immediately have great salutary effects
1- Strengthening India viz-a-viz US as the dollar will plummet - I have nothing against the US, but am happier to see India gain

2- Reducing Chinese savings to rubbish as they are all linked to USD and also lowering Chinese competitiveness for influence in mid-east. After all the Arabs can eat wheat or rice, bu they cannot eat lead painted toys!

3- lowering fuel prices while increasing agri-investment incentives - all for the good. India can actually double agri-output only is wastage is reduced and its age old IPR in organic farming enhanced

2 comments:

kp11 said...

Medicines may soon contain cow urine

http://timesofindia.indiatimes.com/HealthSci/Medicines_may_soon_contain_cow_urine/articleshow/3106048.cms

nizhal yoddha said...

in a sense, ghostwriter, it is good that big money is coming into agriculture. it means they will influence government policy etc. this is one of the things that will happen in india too as ITC and reliance get into "farm-to-fork" full-scale supply chain integration, cutting out several layers of middlemen. they will have huge economies of scale, and can become highly efficient producers. the farmer will need to be protected against their depradations, and the government will need to ensure that all the profits are not siphoned off by them. some kind of co-operative structure may be appropriate, as in the signal success story of amul.

btw, are there any other agribusiness success stories in india?