Who hates capitalism?
India does not hate it, they've embraced it. Of course, not everywhere. Why? because the situation is not the same. Having > 500 million people subsisting on agriculture is not the same. Different situations warrant different solutions.
Charge for water you say? Who will collect the charges? A bureaucrat. If the price is too steep, perhaps the farmers will bribe him. If it isn't, he'll probably keep x% of the collections anyway.
The infrastructure to distribute all the food that will soon rot in warehouses....is present, or can be easily acquired. The corruption, inefficiency and laziness... not much can be done about that