How Government Can Earn Billions Without Taxing, Save Farmers and Consumers
Posted on April 13th, 2020
Dilrook Kannangara
The pandemic has proven how disastrous the western open economic system is without checks and balances. This is the perfect time to invest in a local production of food, transport, storage, and retail. The government must get back to the business of food.
In order to do so, the government must have large and distributed storage facilities, transport systems, warehouses and outlets (or agreements with commercial outlets). It is a substantial investment but it pays off quickly.
The final consumer price must be based on the world market prices of those commodities with a local discount. Retail, storage and transport legs of the chain can be allocated a set cost per tonne. Once they are taken out, the price to be paid to the farmer can be calculated.
Food importation must be only done by the government.
The price of intermediaries must be based on the set price per tonne and it should not be increased other than for inflation. If any government-owned intermediary runs at a loss, their efficiency must be increased profitably by taking whatever action needed.
This method will earn the government billions of rupees every year in profit without having to tax people. Singapore follows a similar model in many industries (agriculture is not a major industry in Singapore) that is working very successfully. The western dogma that governments cannot do business is proven wrong. What is required is a commercially viable business model for the government.
April 13th, 2020 at 6:09 pm
Good article. Thank you.
April 13th, 2020 at 7:53 pm
Yes, it is a good article. This is what the president said recently the country should be self sufficient in food. Food security is the most important need for a country like ours and it can be easily achieved. We have a very rich soil for agriculture and abundance of fish in the vast areas of sea under our control and inland waterways for farming fish. The government should stop the import of fruit as our northern farmers were growing apples and grapes before the war started. Give them the water they need and they will produce apples, grapes, potatoes and chillies we need. Canning factories can store the excess produce of fish, veggies and the fruit. Government agencies like the co-op societies, CWE ect should take control of storage and distribution of food and eliminate the middle men who cheat the farmers and inflate the retail prices. Most of these can be achieved in a short period of time and give employment to a lot of rural folk.
April 13th, 2020 at 11:50 pm
Fully agree with Dilrook. Food security is as important as the country’s security. Outside forces can impose sanctions when a country is at her weakest to gain importance and political leverage.
It was also food security that Ranil and his gang had their eyes on after ransacking the Central Bank – the centre of the economy of Sri Lanka! They went to town with it – went and landed the rice at Mattala Airport only later to be converted to animal feed and beer – Made half a million acres of land go fallow without cultivating rice – then turned to other crops, promising all can be imported at a lesser cost. This was the advice of the Best Finance Minister in Asia!
In the end, we must make the medium of imports- the American Dollar irrelevant in every way that is possible. American Dollar is a cheque that never went to the bank to be cashed. It entirely relies on its slaves using it as a promissory note and keeping it in circulation. Ever since the Dollar went off Gold the dud notes have been in circulation creating mayhem and willing slaves around the world!