Letters: Market forces can help

This refers to Shreekant Sambrani's article "Veggie vengeance" (June 25). When the government is trying to streamline the Food Corporation of India (FCI), which has become a big bubble, how can it get involved in the purchase of these additional commodities at the same time? If the state agricultural marketing boards are given this task, they will further mess up the situation. Many of them are already inefficient. If they get involved in the purchase of vegetables, they will buy them at a wrong time, when the supplies are low, further putting upward pressure on prices, and then sell them when the supplies are high, adversely affecting farmer incentive. It is best if the National Democratic Alliance government leaves this situation to the market forces. People should learn to face such market fluctuations in their own way, by forming co-operatives and becoming a watchdog of the traders who are involved in illegal hoarding. In the long run, if the government changes its stand on foreign direct investment in retail, and allows retailers such as Walmart to enter the market, then these retailers will store such products in an efficient way and fix the fluctuation in prices.

Chandrashekhar G Ranade Washington DC

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