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Unfair Tax: Mandi Tax on grain procurement offers some states a double privilege

-The Economic Times State levies on grain purchase by the Food Corporation of India (FCI) will reportedly push up the Centre's food subsidy bill by Rs 10,000 crore this fiscal year.  This is absurd and untenable. High taxes and commissions - 14.5% in Punjab and 10.5% in Haryana - on the minimum support price (MSP) of grain jack up the costs of procurement, drive private trade out of these markets, and set...

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Business proving disastrous in policy on food & agriculture

-The Economic Times Ashok Gulati, chairman of the Commission for Agricultural Costs and Prices, warns that India will have a record food grain stock of 75 million tonnes by June when wheat procurement for the year would be over. A third of it would be stored in the open, and vulnerable to damage from rain, as covered storage capacity is only 50 million tonnes. If these stocks are not run down...

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Food security: Delivering the promise efficiently by Ashok Gulati, Jyoti Gujral & T Nanda Kumar

To banish hunger and malnutrition from the country, Parliament is likely to pass the National Food Security Bill (NFSB). In our earlier article on this issue, Can we Afford Rs 6-Lakh-Cr Food Subsidy Bill in 3 Yrs? (ET, December 17, 2011), we concentrated on the likely financial implication that we estimated at roughly Rs 6,00,000 crore over a period of three years. In this piece, we address the operational challenges...

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Safal shows the way by Latha Jishnu & Jyotika Sood

Mother Dairy’s retail model helps farmers but is under pressure from chains Call it the Safal model. For close to 25 years, a large chunk of households in the National Capital Region have had access to fresh fruits and vegetables at affordable prices—at rates much lower than what the local vegetable and fruits market or the handcart vendor would charge. This was made possible by standing the concept of buying on...

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Not a grain of sense

-The Business Standard   The new Bill will set back the cause of food security - while wrecking central finances. The Food Security Bill cleared by the Union Cabinet for introduction in Parliament seems irrational and impractical by parts. It seeks to provide a statutory right to highly-subsidised food for 75 per cent of the rural population, with 46 per cent in the “priority” category, or below the poverty line (BPL); and to...

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