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By:

Kaustubh Kale

10 September 2024 at 11:37:15 pm

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar....

Modak and the Art of Investing

As the aroma of freshly steamed Modaks fills homes during Ganesh Utsav, the festive spirit comes alive instantly. My mouth is already watering at the thought! The humble Modak, prepared with love to honour Lord Ganesha, may look simple from the outside. But anyone who has tried making one knows that a good Modak depends on several things coming together - the right ingredients, the right recipe, patience with the process, and finally, enjoying the result. Investing is surprisingly similar. Choose the Right Ingredients A Modak is only as good as the ingredients that go into it. Fresh coconut, good-quality jaggery, properly prepared rice flour and the right flavours all contribute to the final result. Our investments and financial products are the ingredients of our financial plan. Equities, mutual funds, fixed income, gold and other investments each have a specific role to play. The objective is not to pick whatever appears most exciting at the moment, but to select suitable, good-quality investments that match our financial goals, time horizon and ability to take risks. Health and life insurance are equally important ingredients. Adequate coverage helps protect savings, the family, and their financial goals and dreams. Good ingredients provide the foundation. But ingredients alone are not enough. Get the Recipe Right You may have the finest ingredients in the kitchen, but if the proportions are wrong, the Modak may still not turn out well. The same applies to investing. Asset allocation is the recipe of a financial plan. Too much of one ingredient can spoil a Modak. Similarly, excessive concentration in one asset or too much money in low-return products can spoil a portfolio. Balance is key. A thoughtfully constructed portfolio brings different investments together in the right proportions. To keep asset allocation very simple - short-term goals can be planned through bank fixed deposits, recurring deposits and debt mutual funds. For long-term goals, one can consider hybrid mutual funds, equity mutual funds or direct stocks. Trust the Process Once the Modak is shaped and placed for steaming, constantly checking whether it is ready will not make it cook faster. Investors often make the same mistake. We keep checking markets, reacting to every correction, chasing recent performers or changing strategies because of short-term noise. Good investing requires patience and discipline. Invest regularly, review periodically and allow your financial plan enough time to work. Compounding is powerful precisely because it rewards those who remain invested for long periods. Sometimes, the best thing an investor can do is simply avoid unnecessary interference. Enjoy What You Have Created Finally comes the most important part - eating the Modak! The purpose of investing is not merely to accumulate the largest possible number on a statement. Wealth should eventually help us fulfil our goals, support our families, create financial security and enjoy life with greater peace of mind. A good Modak needs the right ingredients, the right recipe and trust in the process. A good investment journey needs exactly the same. This Ganesh Utsav, may Bappa bless us with the wisdom to make good financial choices, the patience to stay disciplined, and the prosperity to enjoy the fruits of our efforts. Ganpati Bappa Morya! (The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

The PDS Puzzle

Suyash Padate
Nov 4, 2024
2 min read

Updated: Nov 7, 2024

PDS Puzzle

The Public Distribution System (PDS) in Maharashtra provides food security needs to the citizens of the state by making sure the essential commodities are available at a subsidized price. The PDS has been criticised for its failure to serve the poorer sections of the population effectively. The targeted PDS is meant for extricating the poor from the clutches of hunger however, looking at the present status the system is giving rise to the corruption depriving the needy.


The Public Distribution system (PDS) includes procurement, storage, transportation and distribution of food grains at subsidised prices to implement National Food security Act. The department of food, civil supplies and consumer protection of the government of Maharashtra are responsible for the implementation of the Public Distribution System in the state. But truly speaking due to rampant corruption the entire system itself landed in doldrums. The PDS is in danger of being totally derailed not only in Maharashtra but several States across the country. Recent disruptions of the PDS have taken different forms, from compulsory biometric authentication to so-called direct benefit transfer (DBT). The consequences are alarming, marching towards starvation but tend to go unreported.


Major obstacles in this system are the leakages, in other words theft of the food grains. This particular aspect remained unacceptably high starting from 30 percent to around 50 percent leakage. Significantly, the government has claimed that there is strong evidence of declining leakages in recent times due to the state having undertaken serious PDS reforms. There might be some decline in the leakages as the government says, but the fact remains that supply of food grains is still interrupted in most of the parts especially in rural areas. The officials have pointed finger towards the APL quota as the biggest source of continuing leakages.


The PDS has been one of the main policy instruments of the government of India to provide food security to the people of this country, especially the vulnerable ones. The National Food Security Act (NFSA), 2013, also relies heavily on it to deliver even more grain at highly subsidized prices to 67 percent of the population. But the existing PDS system has been highly “leaky”, with large amounts of grains (40 to 50 percent) being pilfered and diverted to the open market. Also, the existing PDS delivers better in a very small vicinity of the state. At the same time those where there is concentration of poor, raising issues of equity PDS delivery is worst. The percent share of total leakage increased with states where greater percent of India’s poor resided.


The implementation of the National Food Security Act is an important opportunity to phase out this leaky quota and complete the process of PDS reform across the country. It plays an important role in ensuring food security, alleviation of poverty and fulfilling the nourishment needs of the population. Over the years, the Public Distribution System has become an important part of the government in outlining the state policies for the management and food security of the country.

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