The wastage of millions of tonnes of food grain due to lack of storage facilities may have rocked parliament and prompted the Supreme Court to direct the government to distribute grains free of cost to the poor, but Kaushik Basu, chief economic advisor in the finance ministry, believes lack of warehouses is only part of the problem and is in no way responsible for the rising food prices. In ‘The economics...

Union Minister for Agriculture Sharad Pawar on Saturday dismissed the possibility of free foodgrains distribution. “The government already spends Rs. 66,000 crore on foodgrains subsidy. We buy wheat from farmers at Rs. 15 a kg, but sell it to the Antyodaya population at Rs. 2 a kg. How can we sell any cheaper than that?” He was speaking at a meeting of the Maharashtra Pradesh Nationalist Congress Party (NCP). Free distribution of foodgrains...

It is not every day that we have more than 60 million tonnes of foodgrain in our granaries. It must be an achievement, considering we were living literally from ship to mouth even in the 1960s. Unfortunately, what could have been a matter of pride has turned out to be a national shame, that too the second time in this decade (the first was in 2001). As Karl Marx said,...

The disastrous effect of the state throwing up its hands and retreating is most starkly visible in agriculture . Remember: agriculture involves 70 per cent of the country's population , generates about 56 per cent of national income, 64 per cent of total expenditure and about one third of total savings. So, any neglect translates into gigantic costs. And the central crisis in agriculture — production barely matching a depressed...

Union Minister of Agriculture, Consumer Affairs, Food and Public Distribution Sharad Pawar on Friday said retail prices of some food items like pulses, edible oil, milk and vegetables have been rising in the last six months. “There are few items (essential commodities) where there is no improvement in prices…retail prices of pulses such as urad dal and moong dal, edible oils like groundnut oil and vanaspati, milk and potato have shown...