Last week, the Indian Meteorological Department (IMD) released its first annual monsoon forecast for June-September. Monsoons are likely to be normal with the probability of deficient or excessive monsoons being relatively low, according to IMD. If this prediction comes true, what does this really mean for India's economy? Impact on agricultural output: The first and most important impact is, of course, on agricultural production, especially in the kharif or summer season....

The government should immediately announce a 10% increase in the floor price of cotton and rice to protect farmer incomes if it imposes a ban on the export of these commodities, India's two most economically significant cash crops, according to the Commission of Agricultural Costs and Prices (CACP), a body which advises the government on the pricing policy for major farm produce. "Any ban on export is an implicit tax on...

Faulty procurement, rising farm inputs force West Bengal farmers to commit suicide LONG known as farmer friendly, West Bengal is now making headlines for farmers’ suicides. Reportedly 31 farmers, including landless farm labourers and small traders of agriculture produce, in the state took their lives between October last year and January. Twenty-one of the 31 deaths are from the state’s rice bowl Burdwan district. And this is probably a reason the spate...

-Live Mint The National Food Security Bill (NFSB) has finally been cleared by the cabinet. While this should have been seen as an important step forward towards the objective of food security for all, the Bill has come under severe criticism for being too ambitious and disastrous for the economy. While some of these fictitious numbers are expected from the media, concerns have also been raised by senior government functionaries, notably...

The state's rice bowl is left empty An unviable minimum support price (MSP) for rice has forced farmers in Andhra Pradesh to leave their lands fallow. The movement is spreading to other states. “Farming never pays” is a familiar slogan among agriculturists across the world, and especially so in India. Nevertheless, many continue to cultivate their fields year after year, barely eking out an existence, toiling in the hope that the tide...