I know this goes on and it is a form of corporate corruption, another example of what happens when the government fails to regulate markets. Btw the image you posted is from India. I managed to trace it back to this article for anyone who wants to read more:
http://www.businessinsider.com/india...aucracy-2012-7
The Indian government actually
tried to put a stop to the rotting grain (which is being produced at too great of a rate to even store in proper facilities, which is why it is rotting so fast) but officials ignored them. So it's not like they can't do anything about it. It's just that they are too eat up in corruption at the moment for the laws to be followed.
Compare this to the communist regimes of the USSR, China, or Cambodia and you'll see even greater atrocities involving starvation, often intentional. If you want to be fair about capitalism vs communism you should bring that up too. We have seen very few communist governments on any large scale because they collapse so immediately into totalitarianism, which I'm telling you people is the whole point of it. It's not even a contest as to which has been more effective. We are all still part of capitalist societies right now, thank God, because if we were under totalitarian communism we probably wouldn't even be allowed to have this discussion. China's iron grip on its media is well known. Communist governments tend to have sensitive feelings too apparently.