The country is even otherwise embroiled in a series of internal conflicts, one certainly triggered by clumsy handling as in the case of Telangana with the Home Minister Mr. Chidambaram's midnight announcement yielding to pressures from a fast undertaken by Mr. K Chandrasekhara Rao for a separate state. Andhra Pradesh has suddenly ceased to be a vibrant region with its dynamic capital, Hyderabad, no longer an investment destination. A few million settlers there are in dread of the future for them.

True, inflation is highly uncomfortable for a Government, whose overriding objective and preoccupation is to get back to the “high growth trajectory”, irrespective of contribution thereto from agriculture itself, on which some 600 million people directly depend. While constantly citing its “inclusive development” programmes, enhanced budget allocations and a steady rise in credit to farmers, the Government has not brought to bear on moderating the food inflation, the “ability” it proudly claims in having tided over the global economic crisis. Nor over these years in power has it tackled agricultural productivity upfront.

Government had remained unmoved through months when political parties, not excluding the Congress spokesmen, raised the price rise and the opposition caused uproar in Parliament with some agitations outside. Government's failure to intervene with credible steps was widely commented upon by independent economists and the media. It was left to the Reserve Bank to highlight the growing risks of unprecedented levels of food prices turning into generalised inflation. Analysts wondered why a Government with the best economic brains at the top was floundering and clueless.

Both the Finance Ministry and RBI agreed on supply constraints as the cause for galloping prices. But it was not followed up with decisive steps by Government which would, even if not fully successful, have at least earned them some credibility. The situation was allowed to deteriorate as banning of exports of rice or zero tariff for certain imports had no effect on the domestic price level. Whatever the factors, economists like Dr. Abhijit Sen, Member of Planning Commission, feel that Government should have acted against hoarders and speculators. This is certainly an area where the states should be involved but the Centre itself woke up to the problem after a long time.

It was only when Ms. Sonia Gandhi saw possible political fall-out of the unabated price rise, the Congress Working Committee held an emergency meeting. Government was reactivated and the Prime Minister held a meeting of Chief Ministers, the one he had deferred earlier hoping a fall in prices would make a more conducive setting for this exercise. There had been repeated assurances from Government that prices would be controlled because of “adequate stocks” of food grains and there need be no fear of “food insecurity”, but these proved worthless.

The issue is not one of food security but plainly unchecked double-digit food prices for the ordinary consumer. Far from any tangible steps by Government, continuous attempts were being made by top spokesmen, especially the Deputy Chairman of the Planning Commission, to play the whole thing down or dismiss it as one “hyped by middle class” not wanting farmers to get incentive prices! In late January, Government announced an extra allocation of ten kilograms of wheat or rice for families under the Targeted PDS for two months and release of some stocks for sale in the open market. The latter step could have been taken much earlier if only for the psychological effect it would have had on traders.

As the price situation was turning politically explosive for the ruling dispensation, the Congress tried to fasten responsibility on the Agriculture Minister Mr. Sharad Pawar. The NCP leader reminded that Government functioned on the basis of collective responsibility. And for his part, Mr. Pawar put the blame on states not lifting the stocks for PDS. All that the busy Finance Minister Mr. Pranab Mukherjee, could say at one time was that states should join a “collaborative effort” to tackle the menace of food inflation.

With the blame game at its height, the Chief Ministers Conference on February 6 at least helped a frank exchange of views on what ought to be done “collectively” to control prices. Dr. Manmohan Singh listed steps taken by the Centre so far and reminded states of their responsibilities in food management, especially dealing firmly with hoarding and blackmarketing. Again, agriculture was brought back to the centre of the agenda, where there are no “green shoots” of the second revolution so much talked about over the last five to six years. The Prime Minister called for strengthening the “hopelessly outdated” public distribution system but in the process he also made out a case for more competition in retail trade by “opening up retail trade”.

At the end of it all, the States were also told that the “worst is over” on the price front and, as Dr. Manmohan Singh said he was confident “we will soon be able to stabilise food prices”. Now the problem has been entrusted to a panel of ministers of the Centre and states in devising measures to moderate prices as well as to improve agricultural output and productivity.

For the Centre, it has been a year of one step forward and two steps backward in many policy areas. This can happen when over-zealous ministers announce policies off the cuff, without involving stake-holders, and then retreat in the face of critical scrutiny. This happened typically in regard to education, however desirable reforms are needed in secondary and higher education.

The country's biggest failures are in not being able to raise the levels of agricultural productivity and social development, especially education and health, even after sixty years since independence. Government has not effectively dispelled the widespread perception that all these are secondary to them in the over-drive for growth. If the food crisis has a lesson, it is that the 12th five year plan ought to be a farm and human development-oriented plan with accountability for results. The 11th plan priorities have gone haywire. We cannot have more of the same every five years. (IPA Service)