Jul 13, 2007

"Relief" Packages - Farmers / Exporters

Do you remmember the Vidharba Farmer's relief package (well to be honest it was not a worthwhile package to give any "relief")?. Well it came after several years of farmer suicides numbering thousands and was withdrawn after one year by Maharastra govt. Actually it gave money mostly to banks who didnt implement most of the package.

But Exporters within six months of Ruppee Appreciating by 10% got a "relief Package". Its a pretty big package & comparable in sheer size to farmer relief package.

Just compare: the suffering - loss in profits for expoerters to loss in lives for farmers, the swiftness with which this package was passed vs years of inaction by PM on farmer suicide package, the media demand for the export package (there have been many front page articles by mainstream media demanding export package and finance/commerce/PM have had several meetings with exporters on this vs. very few articles for relief packages demand for farmers and well virtually no attention until the end given by any ministry - not even the agricultural ministry headed by Sharad Pawar who hails from Maharastra.

And will I see any mainstream economists raising their voices against this clearly anti-market government intervention (atleast in their opinion). I doubt it. All this exporters relief just to maintain our export numbers, is it worth it?. Obviously not. But the comparison with farmer's package really disgusts me.

Exporters get Rs 1400 cr compensation package
http://www.business-standard.com/common/storypage_c_online.php?leftnm=11&bKeyFlag=IN&autono=25359

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