THE HINDU Editorial Vocabulary- January 16, 2018 - Topic 1

Problem of plenty

On devising a sound agricultural policy

There appears to be no end in sight to the cycle of boom and bust in the prices of agricultural goods. Over the last few weeks, across India the price of potatoes has fallen sharply after a year of bumper production. With the price of a kilogram of potato dropping as low as under a rupee in certain wholesale markets, many distressed farmers have left their produce to rot on the roads, and in cold storage facilities. 

Curiously, potato prices were many times higher just months ago amid scarce supply. Last year, the price of other produce like red chilli, tur dal and tomato witnessed a similar trend of steep falls compared to the previous season. The sharp swing in prices has been explained by the Cobweb phenomenon. Farmers tend to increase the production of certain crops in response to their high prices during the previous season, which in turn leads to a supply glut that causes prices to crash. The cycle repeats each passing year, with the lag between price and production causing a huge mismatch between supply and demand. The present fall in potato prices comes against the backdrop of a slowdown in the rural economy. According to advance GDP estimates released by the government last week, farm growth is expected to drop from 4.9% in 2016-17 to 2.1% in 2017-18.

Given the humanitarian and political costs of agricultural distress, particularly in a year when many big States go to the polls, local governments could turn towards populism to satisfy their rural voter base. This could come in the form of fiscal measures such as farm loan waivers, a higher minimum support price for farm produce, or some combination of the two. The next Union budget may well be focussed on the rural economy through fiscal measures. Such relief measures that temporarily ease the pain on farmers, however, will fail to make a significant difference to their lives in the long run. Any permanent solution to the problem of agricultural distress will have to deal with the challenge of price fluctuations. The boom-and-bust cycle is the result of a broken supply chain that is over-regulated. In the absence of a robust market for buying and selling forward-looking contracts, farmers are left to fend for themselves against severe fluctuations. In addition, the domination of the wholesale market by cartels prevents farmers from receiving a fair price even when their produce is sold at much higher rates to consumers. The government must resolve to address these structural issues, and not limit itself to ad hoc policy measures in firefighting mode. There is a need to give farmers not just a better, but also more stable, return on their crops.

Vocabulary

Curiously: strange.

Example: A curious sensation overwhelmed her

Synonyms: strange, odd, peculiar, funny, unusual, bizarre, weird, eccentric

Scarce:  insufficient for the demand.

Example: As raw materials became scarce, synthetics were developed

Synonyms: in short supply, scant, scanty, meager, sparse, short, hard to find

Antonyms: rank, overabundant, rich, long, lush, plentiful, teeming

Phenomenon: a fact or situation that is observed to exist or happen, especially one whose cause or explanation is in question.

Example: Glaciers are unique and interesting natural phenomena

Synonyms: occurrence, event, happening, fact, situation, circumstance

Antonyms: noumenon, thing-in-itself

Glut: an excessively abundant supply of something.

Example: There is a glut of cars on the market

Synonyms: surplus, excess, surfeit, superfluity, overabundance, superabundance

Antonyms: lack, shortage

Backdrop: a painted cloth hung at the back of a theater stage as part of the scenery.

Example: Alex is happy with the Art Alliance and has volunteered to paint some scenery backdrops for them.

Combination: a joining or merging of different parts or qualities in which the component elements are individually distinct.

Example: A combination of blackberries, raspberries, and rhubarb

Synonyms: amalgamation, amalgam, merger, merging, blend, mixture

Fluctuation: an irregular rising and falling in number or amount; a variation.

Example: Fluctuations in the yearly values could be caused by a variety of factors

Synonyms: variation, change, shift, alteration, swing, movement, oscillation

Resolve: firm determination to do something.

Example: She received information that strengthened her resolve

Synonyms: decision, resolution, commitment

Antonyms:  disbelief, distrust, doubt, doubt, hesitancy, hesitation

Robust: strong and healthy; vigorous.

Example: The Caplans are a robust, healthy lot

Synonyms: strong, vigorous, sturdy, tough, powerful, solid, muscular

Antonyms: tasteless, weak, frail, debile, decrepit, refined

Prevent: keep something from happening or arising.

Example: Action must be taken to prevent further accidents

Synonyms: stop, put a stop to, avert, nip in the bud, fend off, stave off

Antonyms: allow, permit, let

Domination: the exercise of control or influence over someone or something, or the state of being so controlled.

Example: Evil plans for domination of the universe

Synonyms: rule, government, sovereignty, control, command, authority

Antonyms: anarchy, confusion, disintegration, disorder