Sad state of food security

The Food Security Bill is a Trojan Horse, beautiful for the government, which leaves it as a sign of immense goodwill, but deadly for those who host it. The Bill will create mounting problems for the banking system, jacking up their credit allocation for food, will create pressure on RBI to manage foreign exchange reserves in a drought year, will cripple state government finances as both cash support and the women and child component is hosted on their budget, and finally for the terms of trade between MSP-based crops and those like potatoes and onion that do not have it. The final line of destruction will, of course, be the windfall gain for all ration shop owners in towns.

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