Earlier this week, India's opposition parties came together in a rare show of unity to take to the streets in cities across the country. They protested against the government's recent decision to raise fuel prices after it scrapped its subsidy of petrol prices in an effort to cut the budget deficit. Supporters of the right-wing Bharatiya Janata Party joined hands with their ideological rivals among the Communists to paralyse normal life in...

Furious debates among policymakers about the proposed national food security law largely revolve around its financial repercussions. The Planning Commission is finally coming around to accepting the Tendulkar Committee’s estimates of 37.2 per cent BPL population or 8.5 crore BPL households. The fiscal burden in implementing the food security law for 37.5 per cent BPL population, with each household being provided 35 kg food grains, is estimated to be Rs...

It is the availability of adequate foodgrains to meet the mandatory requirements under the proposed National Food Security Bill that worries the government, not the enhanced subsidy such a move would entail. From what the government is planning it appears that the subsidies on petroleum products would go to meet the requirement of providing cheap foodgrains to the poor under the Public Distribution System (PDS) and to bring the Above...

The recent announcement of minimum support prices (MSP) for various Kharif crops has once again called into question certain aspects of the official policy towards agricultural pricing. True to pattern, it has come in late. The monsoon arrived at least a week before, and many farmers might have already chosen the crops to sow. The world over governments through their price support programmes, consisting of assured minimum prices and subsidies,...

While it may appear paradoxical that at a time when the government is fighting inflationary pressures, it has chosen to hike the minimum support price (MSP) for foodgrains, the reality is that prevailing market prices for almost all foodgrains, oilseeds and cereals are way above even these newly announced prices. Therefore, despite the substantial hike in MSP for kharif crops, especially for pulses, the impact on both market and farmers’...