The government’s latest estimates show that foodgrain production in the crop year 2010-11 rose sharply by 10.75% to a record 241.56 million tonnes (mt), a move that could potentially have a dampening effect on inflationary expectations. The impressive increase led by wheat, maize and pulses is revealed in the final estimates for 2010-11, and is partially explained by the fact that 2009-10 was a drought year. The crop year extends from July...

The ministry of agriculture has written to the ministry of rural development asking them to suspend Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) projects during peak farming seasons because of labour unavailability. The ministry of rural development headed by Jairam Ramesh has still to take a decision on this matter. The secretary of agriculture P.K. Basu in his letter has rung the alarm bells by pointing out that the ministry’s assessment...

-Reuters   Red-hot food inflation that has vexed policy makers around the world seemed to take a breather last month, when corn and wheat prices tumbled on reports that crop shortages were easing. The sell-off was also driven by global economic worries that prompted funds to exit grains in droves. But prices are climbing again, and have already made up half of June's losses. The sell-off masked an unnerving reality: The world remains...

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...

So it's not going to be a normal monsoon . That's hardly surprising. Indian rainfall is erratic in four out of 10 years. About 80% of our land mass is highly vulnerable to drought, floods and cyclones. 50 million Indians are exposed to drought every year. The agriculture ministry says 68% of India's sown area is subject to drought in varying degrees. Annual average rainfall is 1,160 mm. However, 85% of...