India’s fiscal policy is not supportive of monetary measures that the country’s central bank is employing to fight rampant inflation, the prime minister’s honorary economic advisor and former International Monetary Fund chief economist Raghuram Rajan said, while singling out the proposed Food Security Bill as a particular cause for concern. The Bill, which proposes to give about 68 per cent of population the legal right to subsidised food, will not only...

-PTI   The food ministry plans to augment wheat and rice procurement by 10 million tonnes to meet the expected demand for 70 million tonnes of foodgrain under the proposed National Food Security Act . "We have to increase the foodgrain procurement to 70 million tonnes in order to meet the requirement under the proposed bill," according to a senior official. The government buys around 60 million tonnes of wheat and...

Any Indian denied food security rights will be able to seek quick legal redress if the government accepts a suggestion from the Sonia Gandhi-headed National Advisory Council. The council wants the National Food Commission, a watchdog against any violation of the National Food Security Bill, to be given all the powers of a civil court. Its verdicts are to be binding on the government. Such a measure will help provide quicker and...

Obituaries for the PDS system are a bit premature, based as they are on outdated data and presumptions. Despite flaws like pilfering and leakages, the system shows signs of improvement in certain states. States have demonstrated the political will to invest in the PDS, by putting in state resources to make it work. Cash transfers (CTs) are increasingly advocated as an alternative to the Public Distribution System (PDS). The proponents of...

The Government proposal to make cash transfer in place of food grain to poor families has drawn mixed reactions. Raghuvir Nagar on the western outskirts of Delhi has of late turned into a turf for a war between two schools of thought. The war has not been limited to campaigns and debates and purportedly escalated to the level of allegations, even intimidation, so much so that the Government of the national...