GS Paper 2
Topics Covered: India and its neighbours.
Context:
Sri Lankan President Gotabaya Rajapaksa has declared Emergency regulations pertaining to the distribution of essential food items.
As per the regulations:
- Authorities are empowered to provide essential food items at a “concessionary rate” to the public by purchasing stocks of essential food items, including paddy, rice and sugar, at government-guaranteed prices, and prevent market irregularities and hoarding.
What’s the issue?
- There is a possibility of food shortage in the Country, with the government’s drastic measures against hoarding.
- Fuelling the speculation are different factors, including the country’s known reliance on imports for essentials — such as petroleum, sugar, dairy products, wheat, medical supplies — its fast-dwindling foreign reserves, from $7.5 billion in November 2019 to $2.8 billion in July 2021, and the daunting foreign debt repayment schedule in the coming years.
- The pandemic’s lethal blow since early 2020, to all major sources of foreign exchange earnings — exports, worker remittances and tourism — has further compounded the economic stress.
- The fear of a possible food shortage also stems from the Rajapaksa administration’s decision in April to ban import of chemical fertilizers and adopting an “organic only” approach.
Current situation:
Many, especially daily-wage earners, and low-income families, are complaining about being unable to afford, and in many cases access, essentials such as milk, sugar, and rice during the current lockdown, imposed on August 20 following a rapid surge in daily Covid-19 cases and fatalities, and extended twice since.
- Prices of essential commodities — including rice, dhal, bread, sugar, vegetables, fish — have risen several times during the pandemic, and more rapidly in recent weeks.
What is the criticism of the latest move?
- Criticism of the Emergency regulations has largely been over the government’s legal choices, and their political implications.
- There is also concern that emergency regulations would be used to curb protests and other democratic action.
Challenges ahead:
- Sri Lanka does not have a universal public distribution system or ration cards that can ensure essential goods reach all consumers.
- The current regulations do not address fundamental economic problems, and instead pose the risk of creating black markets.
Insta Curious:
Do you know about the UN World Food Programme, the world’s largest humanitarian organization? Reference
Sources: the Hindu.
