Saturday, August 15, 2009

Rain Rain come today...

When we were kids we learnt a rhyme which went like -- Rain, rain go away, come back another day... Essentially, it was a hope that our day wasn't wasted indoors.

Today the situation has drastically changed, at least in India. The finance minister has just announced that around 161 districts of our country are facing drought.

It is amazing how one phenomenon can affect a billion people.

Almost 60% of our population, which depends on agriculture, is drastically affected due to this drought. Irrigated land comprises of just around 35% of the entire agrarian land in India (558,080 sq km of the total 15,34,166 sq km). So, most of our farmers are still dependent on rain for their crops. Those who have sowed are devastated since their crop is failing. Others who havent sowed are worried since they cant pay back the loans they have taken in anticipation of the sowing season.

The common man, is the next worst affected. Though inflation is negative and still going down, food prices are sky rocketting. My mother tells me that her grocery budget has more than doubled (thank god, i dont need to manage that one!). Due to the sky high prices, people have started changing their eating habbits and moving over to less costly food items and vegetables.

The rural India, which was fast becoming a major spender, will no more be so since their income is adversely impacted. The urban people will have less disposable income since their cost of living has gone up considerably. So, the industry will suffer due to less demand and sales growth.

The political class is by and large immune to any problems in our country. However that's not the case this time around -- Every politician worth his salt will be worried since his vote bank is directly affected. Its interesting to see how people in places where elections are due next will react.

Given all of these facts, it is not so surprising that we hear one or the other minister speak about the steps being taken by the government to improve the situation. It remains to be seen whether these steps will be effective in easing the pain endured by the common man.

The panacea however, are rains and its time we all start praying.

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