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Showing posts from November, 2019

Demonetization - One Year of a Rudderless Cacophony

On the midnight of 8/11/16, in a single pronouncement, the Prime Minister of India made higher denominations of Rs. 500 and Rs. 1000 illegal tender under the pretense of curbing black money, arresting tax evasion, stopping funding of terrorist activities and counterfeiting of currency. Those who had these notes were given a time frame of less than 2 months to deposit them and withdraw new denominations in different slabs of limits set by the RBI. The Indian economy, which is predominantly cash based and the Indian people, a great section of who are financially excluded, existing solely on hard currency, would somehow have to manage through this ‘temporary crisis’ for the greater good of the nation. This was the call of the Prime Minister to undergo ‘temporary hardships’ to root out the ills of the Indian Economy. And so what happened? The country panicked and people rushed to banks to deposit their cash savings, exchange high denominations and lines formed. Long lines, winding unendi…

न्यूनतम समथर्न मूल्य: एक जन-केंद्रित परिप्रेक्ष्य (Minimum Support Price: A People-Centric Perspective)

न्यूनतम समर्थन मूल्य (MSP) एक वायदा है जो भारत सरकार द्वारा किसानों और कृषि श्रमिकों को किसी भी तरह की कृषि उत्पादक दामों में तीव्र गिरावट के दौरान सुरक्षा मुहिया कराता है| न्यूनतम समर्थन मूल्य सरकारी व्यवस्था में एक नीतिगत साधन है और इसे आमतौर पर फसलों की बीजारोपण के शुरुआत में कृषि लागत और मूल्य आयोग (CACP) की सिफारिशों के आधार पर पेश किया जाता है। न्यूनतम समर्थन मूल्य का प्रमुख उद्देश्य भरपूर उत्पादन अवधि के दौरान किसानों को सुरक्षा देना, और उन्हें समर्थन करना तथा सार्वजनिक वितरण प्रणाली के लिए अनाज इकठ्ठा करना है. वस्तुओं की खरीद और पारिश्रमिकरूप, ऐसे दो माध्यम है जिससे एक प्रभावी न्यूनतम समर्थन मूल्य लागू किया जा सकता है. किसानो के लिए पारिश्रमिक की प्रकृति ही न्यूनतम समर्थन मूल्य और प्राप्त कीमतों के बीच के अंतर की भरपाई कर सकता है | बड़े पैमाने पर कृषि संकट के चलते, ऐसे नीतियों पर जोर देने की आवश्यकता है जो तत्काल प्रभाव से सकारात्मक परिणाम सामने ला सकते हों। इन परिणामों को मूल्य और गैर-मूल्य कारक के घटकों के माध्यम से प्राप्त किया जा सकता है। गैर-मूल्य कारक दीर्घकालिक योजना स…

Minimum Support Price (MSP) for Farmers – Ruminations for the Grassroots.

Minimum Support Price (MSP) is an insurance given by the Government of India to insure farmers and agricultural workers against any sharp fall in farm prices. MSP is a policy instrument at the disposal of the government and is introduced based on the recommendations of the Commission for Agricultural Costs and Prices (CACP) generally at the beginning of sowing season. The major objective of MSP is protecting and supporting farmers during bumper production periods by pouring food grains for public distribution. There are two ways in which an effective MSP can be implemented, viz. procurement of commodities and as remunerative. The remunerative nature for farmers compensates the difference between MSP and the prices received by them. With the agrarian crisis looming large, the policies need to emphasize on measures that can bring forth immediate results. These results could be achieved through the components of price and non-price factors. Non-price factors are long-term oriented and r…

Revisiting Financing Blue Economy

Blue Economy has suffered a definitional crisis ever since it started doing the rounds almost around the turn of the century. So much has it been plagued by this crisis, that even a working definition is acceptable only contextually, and is liable to paradigmatic shifts both littorally and political-economically.  The United Nations defines Blue Economy as:  A range of economic sectors and related policies that together determine whether the use of oceanic resources is sustainable. The “Blue Economy” concept seeks to promote economic growth, social inclusion, and the preservation or improvement of livelihoods while at the same time ensuring environmental sustainability of the oceans and coastal areas.  This definition is subscribed to by even the World Bank, and is commonly accepted as a standardized one since 2017. However, in 2014, United Nations Conference on Trade and Development (UNCTAD) had called Blue Economy as The improvement of human well-being and social equity, while signifi…

Blue Economy – Sagarmala Financial Engineering: Yet Another Dig at the Conference in Veraval, Gujarat, January 27th, 2019

Authorized Share Capital in the case of Sagarmala happens to be INR 1000 crore, and is the number of stock units Sagarmala Development Company Limited (SDCL) has issued in its articles of incorporation. This ASC is open, in that share capital isn’t fully used, and there is ample room for future issuance of additional stock in order to raise capital quickly as and when a demand arises. SDCL can increase the authorized capital at anytime with shareholders’ approval and paying an additional fee to the RoC, Registrar of Companies.  Capital Budgeting: Business determines and evaluates potential large expenditures/investments. Capital Budgeting is generally a long-term venture, and is a process that SDCL would use (and uses) to identify hat capital projects would create the biggest returns compared with the funds invested in the project. The system of ranking helps establish a potential return in the future, such that the SDCL management can choose where to invest first and most. Let us si…