How did Malawi turn from a nation that had 1,500 starvation deaths in 2002 to a nation that in 2007 is exporting 400,000 tonnes of maize for emergency operations in neighbouring Zimbabwe?bhupinder has the answer:
Malawi said goodbye to the ‘wisdom’ of free market economy, and re- introduced subsidies for its farmers.the implication, of course, is that this would save indian agriculture too. dweep has an equally convincing solution: cut indian subsidies even if the americans and the europeans don't reduce their own farm support budgets.
Farm subsidies take attention away from the very serious failure of the government, through its monopoly on procurement and intervention in distribution, to provide a supply chain and market that work. This, in fact, explains why the Indian government is so keen to fight for farm subsidy cuts - because it involves little effort to keep a major vote bank happy. Actually doing something about the pitiable state of Indian agriculture is a far less enviable proposition.malawi is a small african country which supports a population slightly less than mumbai's. and america spends around 57,000 dollars a year on each of its 7 lakh farmers while india spends less than a 100 dollars a year on subsidising agricultural inputs for each of more than 50 million farmers in the country (as i pointed out in this comment on this post which tried to justify dweep's earlier argument).