TISS 2008 GDPI preparation- A Topic a Day !

Why another thread for TISS GD-Pi ? Because the first one never served it’s purpose and disgressed into an intro session. So please make sure that you have gone through the gudelines before posting- This thread is for one purpose. To…

Why another thread for TISS GD-Pi ?
Because the first one never served it's purpose and disgressed into an intro session.

So please make sure that you have gone through the gudelines before posting-

This thread is for one purpose.
To help generate quality content for the TISS GD-PI preparation to be held between April 7-16th Mumbai

How are we going to do it ?

We can decide one topic for the day .
Then do our research about it and post relevant info here.
For around forty days we can thus cover forty topics closely related
to various contemporary social happenings.

Rule to be followed :
One post per person and about the topic for discussion that day and if any change needs to be done it should be edited into the same post



for eg if topic is Corporate Social Responsibility
please collect your ideas and post them in a single post.
The idea is not to debate here but to make a solid info base on which we can present our opinions.

Strictly No Do's-
1.Posting anything other than the topic for the day(except the previously discussed topics;if you haven;t posted earlier you can make a post about an old topic)
Use PM or other threads for that . or better ORKUT

I hope this proves useful to everyone

Let's start with the topic for today -\

Agrarian Crisis in India-

We can discuss
1)Agricultural scenario in India
2)Various challenges
3)associted aspects like farmer suicides and land aquiition
Anything which helps complete the agriculture picture in INDIA


edit on Mar3 2008
In last six days we have covered following topics(followed by major contributor/s)

  1. 26feb-Agrarian Crisis in India -Harshaoz
  2. 27feb-Ruppee appreciation and its impact on Indian Industry -Geminigal,isha_raravis
  3. 28Feb- Corporate Social Responsibility (Myth or Reality)-ebullience,gaurav1012,hahahamedicine
  4. 29feb-SEZs in INDIA - Focal Points of Economic Growth or tools of oppression-cat4sure,ebullience,maahi_prasad,Terpsichorean
  5. 1mar-"Legalizing/ Decriminalizing Prostitution" -roopag,arulprakash
  6. 2mar-Naxalites : A threat to India's sovereignty -sanjana.srikant,
  7. 3mar-Budget 2008


I think we have well begun so the job is half done !
What we need is to carry the momentum forward and pour in our thoughts on a daily basis for next 30 days and we know that we would have done justice to our preparation towards TISS GDPI.

Here are some key points regarding agrarian crisis in
India

Crisis 1-World Food prices are increasing and trend likely to continue
due to following reasons-

a)Rise in demand for food consumption in developing economies
b)Increase in consumption of meat
c)Diversion of land to raise biofuels

Hence export not an option

Crisis 2 -Food production output in India inc by 3% per year ,demand
inc by 10 %
LArge gap in demand supply ! Shortage inevitable !

hence per capita availability of pulses/serials decreased from 510gm
in 1990 to 422gm in 2007

Crisis3- Indian Agriculture contributes to 20% output of Indian
economy while 60% people are employed in it
Acc to National Sample Survey Organisatopn 2 out of 5 farmers looking
to quit

Crisis4-India'a Average LAbor Productivity has declined and is even
less than BAngladesh due to inefficient use of resources

Crisis5-Subsidies in Agriculture not working all though they are four
times than in Industrial sector.Difficult to maintain due to
increasing oil prices.

Solutions-
1.Reliable Power Supply
2.Proper Asset Base for farmers
3.Assured market and price
4.Increasing productivity per acre
5.Decreasing wasteful consumption habits like meat consumption

(SOURCE TOI - 25 FEB)

My points:

1.Threat from organised retail sector - With organised retails coming at large, there is a threat perception among the local small retail stores who get their products indirectly from rural farmers.If this perception continues, the average selling of farm items may come down which would be a cause of worry for the rural sector......

2.Government fundings still doesnt reach the root level farmers.Most of them remain unutilised and in some other cases are mis utilised.

3.Farmers should be trained with latest methodologies to compete with international standard products.

Even if FDI is opened up in retail the rural farmers should be in a position to produce high class products to compete the foreign items.

post deleted

Sure...going forward i'll be doing tat...

V nice initiative...

My take on the topic.

1. In many cases Agriculture is a seasonal employment. Once the harvest is done farmers and their family use to involve in alternate works like basket weaving. Change in todays market scenario have made these commodities obsolete. Farmers must be trained in other contemporary alternative works too to avoid seasonal unemployment.

2.Both agriculture and Soil research department must work combinedly to utilise the available arable land effectively.

Will add more...

Will add some of the issues i feel

some may be repeated...
will try to conjure up some viable solns... :P

1) Disguised/Seasonal employment is a huge proble especially in this
sector

2) To much indirect supply of resources(use of middleman)...although
retail IPO helps to an extent here

3) Trade unions for agriculture are ppl who are just figureheads

4) Land acquisition especially in fertile zones and subsequent
reallocation is highly ineffective

5) Land ownership is highly sequestered and need to be more
clustered so as to enable higher productivity

6) Use of better irrigational techniques is needed especially with the
prevalent water crisis and seasonal/eratic rainfall

7) Better solns towards understanding law of diminishing returns as the need to lookin at
the organisational structure of this sector is everincreasing

Need for implementation for cash crops as well as food from the
perspective of biotechechnology(BT-cotton) and also recognise the importance of
horticultural crops

9) Implemation and R&D; towards bio-fuel crops, growing Jatropha etc.

source: my powerful mind... ;)

regards
harsha

hi all...

breaking the holy rules of calvin (who actually walked into a total group of strangers n asked, n i quote, "are u pagalguys??" - the day we were supposed to meet, B'lore!! since no one knew the other... wat a way to get started - shukar kar mara nehi!!)

hmmm... quite a lotta ideas/data/views... personally it all got clogged inside (ya, am like that another bric in the wall types! takes a lil time)...so i thought id share sum perimeter stuff too that i have/had; more of a general read.. not totally a wholesome 'meal' but ya... 'spices' that u can add/mix in gds/pi to get the yummy taste...

the attachements -

Our coverage of the first topic i felt was good to start with and i am sure that with more research we can come with very informative posts with accurate facts and clear logic.
I will post the new topic at 12 am from nowonwards.(regarding suggestions of new topics kindly pm )

By the end of the day we should have at least a couple of good compilations of facts and situations.

Our last topic was social oriented.Let's look at the socio -economic angle
So new topic is
ruppee appreciation and its impact on Indian Industry

Let's analyse the topic in a manner so that we know
1-what is rupee appreciation
2-why is it happening
3-what are the good sides
4-what are the downs
5-any possible recourse for RBI

Will post my analysis by evening

[email protected] leaking inside info 😛

1) Rupee appreciation basically means rupee getting more expensive vis-a-vis other currencies esp dollar.
2)In recent past we have see the rupee has appreciated from Rs 46 in July2006 to current Rs39.9. Usually a country's currency moving up is a sign of country well doing economy.
Boon:
1)It is a boon for those involved in imports. e.g India's chief import is crude oil. Say the cost of one barrel of oil costs 100$ (just for calculation purpose) so earlier with Rs 46=1US$ it would have costed us Rs.4600. But now since rupee is Rs. 39.9 , its costs us Rs.3990
2)One of the biggest beneficiaries of this rupee appreciation are borrowers from international banks. Due to appreciation of rupee, the amount to be repayed to them in terms of dollars is reduced.
Source:attached

Regards,
GeminiGal

A very gud initiative i must say ... a great thread for everyone .... here is my contribution for what rupee appreciation actually means... Appreciating Rupee means that now the Dollar is now cheaper than what it used to be earlier (from $1~50 Rs, now to 40 Rs.), in other words you can buy more from the international market spending the same amount of Rupees. There are very direct effects of the appreciating Rupee in both national and international scenarios.To put it simply we must consider the whole situations through two points of view:------ Import and Export...Import: When you import (buy from foreign markets) goods, you have to pay in dollars. India's chief import is crude oil. Suppose a barrel of oil costs $100, as per earlier rates a company would have to pay aout 4800 rupees($1=48 Rs) to buy a barrel, now can buy the same for 4000 Rs ($1=40 Rs.). so oil companies are the biggest gainers from the appreciating rupee...According to an IOC official -For every 1 Re appreciation the input cost of crude dips by 2% They are now getting oil at reduced prices but selling them to the customers at old rates, hence increasing their profits.-----------Export: When you sell goods/services in foreign market you get payed in dollars. A lot of companies that have been asking the govt. and RBI for control of the appreciating rupee, are export driven companies like big IT cos. who export software solutions and provide out-sourcing services. There are many others too like garment exporters and even automotive companies. the scene here is that, supposing a BPO company charged $100 for its services, it would be getting payed an equavalent amount to Rs 4800 as per old exchange rates, but because of the appreciating rupee, it now gets payed Rs 4000, and as the market gets increasingly competative the company cannot increase the fee it charges the client to $120 to cover this loss, as it risks losing the client to some other company. Garment exporters are hit even stronger as they mostly survive on large dedicated orders and charging more to cover their losses can even result in cancellation of large orders and massive loss to a garment exporter.
ATTACHING A FILE... EVERY WORD WORTH NOTING... http://www.indiainfoline.com/content/bschool/Site_Manager/2007/05/29052007/Rupee_Appreciation.pdf

1) Rupee appreciation basically means rupee getting more expensive vis-a-vis other currencies esp dollar.
2)In recent past we have see the rupee has appreciated from Rs 46 in July2006 to current Rs39.9. Usually a country's currency moving up is a sign of country well doing economy.
Boon:
1)It is a boon for those involved in imports. e.g India's chief import is crude oil. Say the cost of one barrel of oil costs 100$ (just for calculation purpose) so earlier with Rs 46=1US$ it would have costed us Rs.4600. But now since rupee is Rs. 39.9 , its costs us Rs.3990
2)One of the biggest beneficiaries of this rupee appreciation are borrowers from international banks. Due to appreciation of rupee, the amount to be repayed to them in terms of dollars is reduced.
Source:attached
Regards,
GeminiGal

Hi all,
I need a little clarification in the bolded part.

Borrowers will be benefitted in intrest rates also?Say 100$ is the intrest amount now he can pay only Rs.3990. Am i right? Or international banks will adjust the intrest rates based on rupee appreciation?
Hi all,
I need a little clarification in the bolded part.

Borrowers will be benefitted in intrest rates also?Say 100$ is the intrest amount now he can pay only Rs.3990. Am i right? Or international banks will adjust the intrest rates based on rupee appreciation?


One of the biggest beneficiaries of rising rupee stands out the borrowers who haveborrowed from international banks.The companies like Tata steel, Mcdowell toname a few for their take-over plans of Corus and Whyte & Mackay .As onDec.2006 the country has an external debt of $142.65 billion dollar so a 7%appreciation in dollar means the external debt is reduced to $132.66 billion(assuming no more borrowings are taken and no repayments made). This is againpositive for increasing Gross Deficit of the country.SOURCE - see attached file in the previous post

Can someone please explain how the increase in ECB(to the extent of 20 million USD) has added to the dollar supply in the economy??? Kindly explain what ECB is before answering the ques... thanks in advance...

The ECB is the central bank for Europe's single currency, the euro. The ECBs main task is to maintain the euro's purchasing power and thus price stability in the euro area. The euro area comprises the 15 European Union countries that have introduced the euro since 1999.

Hey frenz...Gr8 initiative!...Take me in too....I too ve got a call!

surabhi1984 Says
The ECB is the central bank for Europe's single currency, the euro. The ECBs main task is to maintain the euro's purchasing power and thus price stability in the euro area. The euro area comprises the 15 European Union countries that have introduced the euro since 1999.


thanks a lot ... bt i actually meant the external commercial borrowing... dint quite understand the concept... the european central bank has nothing to do with increased dollar supply in our economy ...

External Commercial Borrowings (ECB) are defined to include

  1. commercial bank loans,
  2. buyers credit,
  3. suppliers credit,
  4. securitised instruments such as floating rate notes, fixed rate bonds etc.,
  5. credit from official export credit agencies,
  6. commercial borrowings from the private sector window of multilateral financial institutions such as IFC, ADB, AFIC, CDC etc. and
  7. Investment by Foreign Institutional Investors (FIIs) in dedicated debt funds
Applicants will be free to raise ECB from any internationally recognised source like banks, export credit agencies, suppliers of equipment, foreign collaborations, foreign equity - holders, international capital markets etc. Offers from unrecognised sources will not be entertained.

Some excerpts from an article that featured in the economic times in december 2007- Swaminathan S Anklesaria Aiyar here questions the claims of job loss owing to the rupee appreciation that are being bandied about:Hundreds of columns have been written on the exchange rate policy of the Reserve Bank of India, and its decision to let the rupee appreciate sharply this spring. However, what was earlier a debate mainly between technocrats has suddenly assumed populist, alarmist tones.In Parliament, commerce minister Kamal Nath has said the appreciating rupee has hit labour-intensive exports such as textiles, leather goods and gems & jewellery, and that one to two million workers may have lost their jobs. Following up, industrialist and Rajya Sabha member Rahul Bajaj has written in this newspaper suggesting that 2.8 million people have lost their jobs.The numbers are so huge that, if they were anywhere near the truth, we would have a major human tragedy on our hands. In fact, we have only tall stories and data inflation aimed at scaring people rather than informing them.Gujarat is a major centre for exporting both textiles and gems. If indeed workers were being thrown out of work by a strong rupee, this would have been a huge election issue. In fact, it was a non-issue.ET correspondents have reported job losses running into thousands in Tiruppur. Clearly, there is some distress in some areas. But it is not an all-India calamity. There is a world of difference between losing a few thousand jobs and two million. Some job losses are inevitable, indeed desirable, in a market economy, and constitute transitional pains, not human disaster. Those who claim that a strong rupee is costing millions of jobs are talking through their hats. We need to shout this from the rooftops, since many media folk are falling for false propaganda on this score.Indeed, the notion that modest changes in the exchange rate can produce such huge swings in employment is obviously false. If a modest rise in the rupee can kill two million jobs, a corresponding fall in the rupee should create a similar number of jobs. Alas, that did not happen when India had big currency declines in the past. Nor will it happen if the rupee now falls by 13%.Export growth in April-September was 26.9% in dollar terms, and provisional data suggest 35.6% growth in October. Even allowing for rupee appreciation of 13%, this constitutes solid export growth. Exporters may be under somewhat more pressure than before, but are not throwing millions out of work. With an overall workforce of roughly 500 million, fluctuations of 1 million or roughly 0.2% are lost in the imprecision of most statistical systems. So even though the word `million' sounds like a lot, on an Indian scale, it isn't.------------------------------ c mon guys, pour in with ur contributions...this thread seems to be so inactive....follwing is the link where all the postive points of rupee appreciation have been briefed up pretty nicely(thanks to this thread, i seem to have become a pro in this topic)..........The other side of Rupee appreciation