Tuesday 12 March 2013

WASTEAGE OF FOOD GRAINS IN INDIA


The farmers toil in the hard sun and depend on rains to feed the Indian country. The same farmers are also underpaid for the yield generated.   The Prime Minister released the survey report in 2012 wherein it was stated that 47 % of Indians are suffering from malnutrition.  It means 1 in every 2 Indian does not get 2 full meals a day. This is indeed a sad state of affair in the country.
 
Before I move on the Logistics point of view for food grains, let us have a look at our daily eating habits.  When we eat food, be it any meal of the day, or in restaurants, there has been many occasions where the food has been wasted. Even for a matter of fact in conferences, seminars, canteen or in buffets, food is tend to be wasted. The reason being we take more food in plate than what we can eat.  Then we see a waste cover in each of the eating area comprising of all food waste.  It is very sad because there are many people who cannot afford to buy food and on the other hand we have all the waste go down the drain.



Moving on the next part is the amount of food grains lost due to poor storage facility, skilled manpower and infrastructure in India. “Admitting the grave problem of wastage, minister of state for agriculture and food processing industries Tariq Anwar said that every year India faces a loss of Rs 50 thousand crores worth of both perishable and non-perishable food item. "After 1960, India went on to become a food surplus country from being a food deficit country but wastage has still not been brought under control.”  As a result of which over 40% of produce is getting wasted every year. But that 40 % would have fed a larger part of 47% people under malnutrition.As Per the IMR report the food tonnage loss in India is equivalent to entire wheat production in Australia.


I also believe the FIFO system of food grain movement is not working at all. If it was, then, FCI would have saved huge amount of food grains from being rotted. Also an effective pesticide control is moving thereby enabling pest to damage the food.

 
 
Ours  is a country that witnessed Green Revolution and white revolution. As a country India has always stood up to challenge. Its time for Food Logistics revolution.  Better infrastructure, storage facilities, and good logistics planning will help in saving huge amount of food grains and reduce cost to the government by generating revenue. Even if the government is not looking for additional revenue, then it must at least look forward to serve millions of Indians who still need meal to survive.

Saturday 2 March 2013

BENEFITS OF PPF ACCOUNT


PPF account is one of the best and safe investments for an individual. A government-guaranteed fixed income security, this is very apt as a long-term savings instrument. Yearly subscriptions can be as low as Rs. 500 to as high as Rs. 1,00,000.

 It counts being among the most secure investments you can have in this country. The interest earned on the PPF subscription is compounded; that means you not only earn interest in the money you put in, but you earn interest on the interest earned too. All the balance that accumulates over time is exempt from wealth tax.

 A flip side, its an extremely illiquid investment instrument. Its lengthy lock-in period works out to 16 years since the last contribution is made in the 16th financial year. In all, the PPF is a very good savings instrument, and you should consider investing in it.

  • Ideal investment option for both salaried as well as self employed classes.
  • Investment up to INR. 1,00,000 per annum qualifies for IT Rebate under section 80 C of IT Act.
  • The rate of interest on the subscriptions made to the fund on or after 01.12.2011 and balances at credit of the subscriber in the existing PPF account shall bear interest at the rate of eight point eight per cent (8.80%) per annum.
  • Loan facility available from 3rd financial year upto 5th financial year. The rate of interest charged on loan taken by the subscriber of a PPF account on or after 01.12.2011 shall be 2% p.a. However, the rate of interest of 1% p.a. shall continue to be charged on the loans already taken or taken up to 30.11.2011.
  • Withdrawal permitted from 6th financial year.
  • Free from court attachment.
  • An individual cannot invest on behalf of HUF (Hindu Undivided Family) or Association of persons.

An example is shown below describing, if an individual invest Rs 1,00,000/ year, then in 15 years he will have an amount of Rs 30.64 lakhs. The interest portion is completely tax free. Principal portion can be claimed as a deduction under Sec 80C.

Year
Principal
YoY investment
Interest
P+I
1
           1,00,000
                           -  
                     8,500
           1,08,500
2
           1,08,500
              1,00,000
                   17,723
           2,26,223
3
           2,26,223
              1,00,000
                   27,729
           3,53,951
4
           3,53,951
              1,00,000
                   38,586
           4,92,537
5
           4,92,537
              1,00,000
                   50,366
           6,42,903
6
           6,42,903
              1,00,000
                   63,147
           8,06,050
7
           8,06,050
              1,00,000
                   77,014
           9,83,064
8
           9,83,064
              1,00,000
                   92,060
         11,75,124
9
         11,75,124
              1,00,000
               1,08,386
         13,83,510
10
         13,83,510
              1,00,000
               1,26,098
         16,09,608
11
         16,09,608
              1,00,000
               1,45,317
         18,54,925
12
         18,54,925
              1,00,000
               1,66,169
         21,21,094
13
         21,21,094
              1,00,000
               1,88,793
         24,09,887
14
         24,09,887
              1,00,000
               2,13,340
         27,23,227
15
         27,23,227
              1,00,000
               2,39,974
         30,63,201

 

Invest in PPF and enjoy the benefits.