Tuesday, February 23, 2010

The issue of price rise of essential commodities.

Perhaps, measures can be taken, to alleviate or make easier, the burden on the common man, in his day to day business transactions, of buying and selling essential commodities. It is the common man, who is the primary participant in the buying and selling of essential commodities. By the term, 'common man', I describe the man who is responsible for the primary production, distribution, and consumption of essential commodities. I do not refer to those, who are living in poverty, because they have no say, in the production, or distribution, or consumption of essential commodities.
If I may compare the common man, to the not so common, or wealthy man, then what is the difference in the consumption pattern between the two? One does not need neither more nor less of the essential commodities than the other. This is true, of the people who live on, and below the poverty line, too. Then, why do we see the price rise in essential commodities? The reason is very evident to all, which is the unequal remuneration among those who deal in essential commodities. The middle man who sells daal to the shopkeeper, is also a common man, in all but income. What is the issue with the farmer, in his dealings, with the wholesale agent? The farmer cannot bargain with the wholesale agent. Why so? Because, he cannot store his produce. Why was the Amul model, not also experimented with, in respect to farmers? Why do not the farmers, make a common storage facility for their food grain, and act as if the storage facility belongs to them all? After the food grain is sold, then they can distribute the money got from the food grain after selling to the wholesale agent, in proportion to the share of the individual farmer in the produce. Perhaps, the problem, is that the individual farmer acts in his individual capacity, as a dealer of essential commodities. In the same way, all the farmers who grow vegetables in an area, come together, and settle their price, at which they would like to sell to the wholesale dealer, in their individual capacity. It is not as if, the wholesale vendor is at an advantage, if the essential commodities do not reach the consumer, because, then, he will not make a profit, nor have a turnover. Every person in the chain of the business of essential commodities, needs to see, that the essential commodity reaches the common man. otherwise, no one will make a turnover. The farmer is not making a turnover at all, he sells vegetables at a price, where he may not make a profit. This may perhaps be the solution for the farmer.
If these measures work, for the farmer, then who will be responsible for the prohibitive cost of essential commodities if the cost is prohibitive to the consumer? Will the whole sale agent be able to sell his commodities to the retailer, at a very high price? The profits of the retailer will decrease, because he will have to pass the high costs on to the consumer. This will reduce the profits of the wholesale agent, too.
What then of the commonly perceived as uncommon man, or those who live below and on the poverty line? These people must be integrated into the economy, in the most fundamental way, initially. How can they be imparted vocational training, free of cost, in the most fundamental way?

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