We are witnessing a slew of ad-hoc measures by the Manmohan Singh government in the name of controlling food prices.  Interest rates charged by the banks have been raised.  Export of rice has been temporarily banned, and so has forward trading in a number of commodities. Many of these measures are in the opposite direction to liberalisation and privatisation, but they are all temporary.  In other words, a policy reversal is being announced, but only for some months until the rate of inflation comes back to what the ruling class considers tolerable.  It is a temporary policy reversal package for achieving a temporary effect, in time for the Lok Sabha elections. This raises a number of important questions.

The temporary policy reversal package proves that liberalisation and privatisation are indeed very harmful for the wellbeing of the people, including security against starvation.  If liberalisation and privatisation were good for the consuming public, as both Manmohan Singh and Chidambaram have claimed numerous times, then why reverse at all?  On the other hand, if liberalisation and privatisation are harmful to the people and their food security, then why only a temporary reversal?  Why not halt and reverse the direction permanently?

What the working people of our country want is a permanent solution to food security. Essential needs must be available to all, in adequate quantity and quality and at affordable prices.   Is it not possible for human society to fulfill this need in the 21st century?

The ruling bourgeoisie in our country used to proclaim self-reliance in food to be one of its policy objectives.  Facts showed that this was not a commitment to provide food security to all members of society.  It was a commitment to accumulate adequate food stocks in the hands of the central state so as to avoid becoming dependent on foreign suppliers, and avoid food riots during periods of acute shortage.  Liberalisation of trade policy has meant abandonment of self-reliance even in words.  It has meant a reduction in the weight of the state in the food grain market, and strengthening of the role of private operators. The total stock of wheat and rice in government hands has declined in almost every year since liberalisation began.

For ensuring and safeguarding food security, it is necessary but not sufficient to ban forward trading in food commodities,. The solution lies in eliminating private firms from the sphere of food trade altogether, at least at wholesale level and foreign trade to begin with.  The solution lies in reorganizing production and distribution of food on the basis of the principle that food is an essential use value, a vital human need, not a commodity from which to make private profit.  The immediate demand is for strengthening the Public Distribution System by universalising it and including all essential commodities like pulses, edible oil, and sugar in the PDS

The central government can and must take full monopoly control over foreign trade, while the state governments have to begin taking charge of planning production, procurement and distribution of food within their respective territories, in tune with the specific consumption pattern of their people and the endowment of water and other natural resources in their territory.