This problem would not be easily solved without a ruling party with a monolithic majority. From another point of view, subsidies for food to maintain the public rationing system can be considered as providing the vast poverty class with a safety net. Even though provision of the safety net may conflict with the market mechanism, it is based on political ideology in the context of Indian society.
Removing government intervention may magnify economic efficiency. But if the intervention, on the other hand, is enhancing social welfare, its removal, i.e., economic liberalization, must be balanced with some measures to complement the loss of welfare.
Despite the record-high level of its buffer stocks, the Government has been unable to reduce the purchasing price of foodgrains, for fear of farmers' resistance. In spite of the existence of the vast population under the poverty line, neither has it cut the rationing price, as any such reduction could augment the budget deficit. Solving this greatest dilemma of agricultural policy should be the critical issue for Indian agriculture in the years to come.
Note：
1. As well as land consolidation of lands, leveling has been undertaken. This is an important infrastructure project for enhancing efficiency of irrigation.
2. For example, the rate of conversion to the high yield varieties (rice) was about 15% in the mid 1970s, and eventually reached 30% in the latter half of the 1980s. As for wheat, where water management is easily, its HYV rate rose to 70% in the mid 1970s, but has since stagnated. Meanwhile, the HYV rates of both wheat and rice in Punjab had already attained 90% in the mid 1970s.
