A perverse, yet novel reason put forward to explain high inflation is that the poor are eating more as they are becoming less poor. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been extolled for being responsible for higher consumption, which in a way is a vindication of high inflation. The extended logic used here is that if the poor are eating more and we are paying high...

One lives to learn — or unlearn. The working head of what passes for this country’s Planning Commission is unambiguous about it. One important measure to fight inflation, he believes, is to raise prices. That is to say, to stop prices from rising, you must first raise prices. The gentleman has heartily endorsed the recent serial increases in the prices of petroleum products since such increases will, in his view,...

-The Times of India   Farmers in Sivaganga district have alleged that funds to the tune of Rs 8 lakh was misappropriated under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) in Vengalur panchayat in Devakottai taluk. Villagers alleged that a panchayat clerk had siphoned off the money allotted for desilting a tank, a key source of water for agriculture in the locality. Based on a report on the alleged...

The rise in food prices, with inflation at 9.06% in May, is more teary a problem than onions suggest. Macroeconomics managers, who safely steered the economy through the downturn, are perhaps grappling with the biggest economic crisis- persistently high food prices. Rising food inflation driven by costlier fruits and protein-based items such as milk, egg, meat and fish is putting policy makers in a spot of bother. Prices are not under...

The episodes of violence in land acquisition by the government, as witnessed recently in Bhatta-Parsaul in Uttar Pradesh and in other states earlier, occur because patterns of violence are inbuilt into the process. Despite a bill pending in Parliament since 2007, there has been little effort by political parties to evolve a consensus on acquisition of agricultural land for non-agricultural purposes. The law as at present and also the provisions...