Food inflation, hovering in the double digits, may play spoilsport to India’s ability to continue its rapid economic growth. It is truly troubling that food still consumes half of the expenditure of the average Indian household. No wonder a sharp spike in onion prices has the potential to upset the political calculus of social stability. India’s biggest challenge still remains ensuring food and nutritional security to its masses. Notwithstanding the nation’s...

It is time for the National Advisory Council (NAC) to introspect whether its pious thoughts on food security square up to an economic reality check. There are three likely scenarios: (1) universal coverage at 35 kg/per month per family; (2) universal coverage with 25 kg per family per month; and (3) partial coverage (say, to 11 crore families) with 35 kg per family per month. In each case, the implications...

Governments rarely shy away from showering farm sops but Karnataka’s BJP government hopes to reap gains with a debatable claim: that its policies have helped reduce farmer suicides. State agriculture minister Umesh Katti recently reeled off in the Assembly suicide figures (see chart) that show a declining trend since 2008-09, when the B.S. Yeddyurappa cabinet took power. The assertion that the slide is because of the government’s efforts follows an agriculture...

India is unlikely to lift ban on export of wheat and non-basmati rice in the wake of high food inflation and food security concerns, the US Department of Agriculture (USDA) has said in its latest report. India had suspended wheat exports in early 2007 and non basmati rice in 2008 due to high inflation in the country. "The government of India may continue to ban exports of wheat and non-basmati rice due...

With food inflation hovering in the double digit bracket for most part of 2010-11 and the aam aadmi up in arms, all hopes were pinned on the Union Budget 2011-12 for giving a new fillip to the farm sector. But the budget has disappointed most, in spite of finance minister Pranab Mukherjee allocating Rs 14,744 crore for agriculture. “An increase of only 2.6 per cent over last year makes the...