Quote:
Originally Posted by Jay
Most of the farmers want to sell their rice to FCI/State procurement to be on the "safer" side. While it is true that the middlemen (rice mill owners) buy off the paddy cheaply and then sell finished rice for a much higher price, thats how most of the business works. Iron ore supplier cannot complaint that steel is 10 times the price of the ore. Most farmers sell it for what ever price the middlemen say, so that they have the cash at hand rather than watch and wait for market for price appreciation.
Also, there are not too many large farmers in India unlike the western countries. Its sort of political, so I dont want to go there.
Only if we control the wastage in all FCI godowns we will be able to feed much more people. Even during the worst of droughts India alway had surplus rice, its just the rotten distribution system in the case of India.
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Yes it would be good if the FCI could be modernised with better godowns and maybe some cold chain as well. A lot of grain gets spoiled by pests or weather. Another problem is that instead of going to the public system, grain is sold illegally to middlemen and the proceeds pocketed. Distribution system is really poor i agree.