Through a new system, the government plans to improve storage and help farmers get a better deal
One issue, other than corruption, that has troubled the UPA government since its first term, is inflation, especially food price inflation.
But most analysts believe that though India needs to improve its productivity, there are enough food grains in the country to feed the teeming millions. The real worry is about the supply chain or the lack of it, to be precise.
Estimates suggest that India wastes almost 20 percent to 25 percent of its food grains due to improper or inadequate storage. That is roughly 60 million tonnes of food grains each year, almost as much as what India actually stores in its official godowns. The degree of wastage is nearly double in the case of easily perishable commodities like fruits and vegetables.
(This story appears in the 12 August, 2011 issue of Forbes India. To visit our Archives, click here.)