Thursday, November 22, 2012

Strategy for election?

The government is holding 42 million tonnes of wheat which is 3 times its mandated buffer stocks. TOI, 17 November. The price of wheat has risen 20% compared to October 2011. Planning Commission member, Abhijit Sen said," In the case of rice and wheat, it is absolutely clear that it is government stocking which is the main problem." So why is the government, which means the Congress, hoarding food grains when its votebank, consisting of the aam aadmi, is suffering so severely? Storing grains costs a lot of money and, since storage in India is still very primitive, a lot of the grains will spoil or be eaten by pests, such as rats. This is because the Congress is preparing for general elections which must be held by 2014 but could be held earlier if coalition partners withdraw support. The Congress is hoping to pass the Food Security Bill which will allow it to give cheap grains to the poor. Opposition parties dare not oppose such a pernicious measure because they will be seen as anti-poor and lose the elections. This is exactly what the Congress did in 2008 when it forgave all loans to farmers, increased civil servant salaries by 80% and started the MNREGA scheme, which hands out money to the rural poor, and dared the opposition to vote against it. The Congress won comfortably in 2009. The result has been zooming inflation, falling exports, falling rupee and falling growth rate. On the other hand, the Congress has also started a trial of cash transfers to the poor based on the biometric identity card called Aadhar. If that is successful the poor will be given cash instead of cheap food through the Public Distribution System which is notoriously corrupt. The poor will be able to buy directly from the market at which time the excess stocks can be released and food prices brought down, helping the poor to buy more food. The Congress will take the credit and win again. Diabolically clever. Also our most revered Finance Minister has promised a " good budget " next year which means more handouts to the poor. One person who has seen the danger is Ms Mamata Banerjee, Chief Minister of West Bengal who wants to pass a no confidence motion in parliament to force early elections in order to prevent the Congress from passing another budget. She is even ready to support the hated CPM to bring down the government. " If necessary, I am even prepared to go to CPM state party headquarters at Alimuddin street here and talk to its secretary Biman Bose on the issue," said she. Sadly other parties consist of a bunch of cowards who are not ready to support her. Parties such as the BSP and DMK, which have been trounced in their states, want more time to build up support. What is certain is that every politician will be calculating personal benefits and not that of the nation. The Congress is banking on that. That is why it will win and we will be junk status.

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