PRAGOTI

hi everyone
hoarding can only affect prices in a short term. there are lakhs of traders in india. are you suggesting that these lakhs of traders are ganging up on twitter or facebook and saying lets hoard potatoes till may and then release the stock. even if we suppose that they are doing it the prices will fall when they release the stock in a future month when they want to release in the market. this could at the max lead to volatitliy in the market where prices are high in one month and low in the next.
when it comes to future trading you have only talked about a scenario where someone is making a profit. whereas in a any market which is liquid there will a counterpart which bets the other way and loses. if someone is buying a future at 29 then there is also someone selling a future at 29 who incurs a loss. so the one selling a future at 29 must be a fool to do so according to this reasoning.
secondly india cannot make massive investments to upgrade storage facilities in food because of the massive fiscal deficit they are already running. i think the govt is doing the right thing by letting commodity prices go up because eventually this will lead to someone producing more due to higher profits they can make. input costs like fertilizers are obviosuly connected to the crude prices and so is diesel . this is a supply based inflation because globally there is a shortage of crude.
the solution to this is to create localised supply chains which minimize transportation cost and make sure that that supplier and buyer are in the same goegraphy.