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...

The National Advisory Council is still working on the amount of grain to be distributed to each family under the Food Security Act. It will hold consultations with ministries of rural development and food and the Planning Commission before it firms up its suggestions for the proposed legislation. The panel, which met on Monday, considered the economic cost of various options to meet the goal of food security. The NAC...

The prime minister, in his Independence Day address said: “I am happy that the growth rate of our agriculture has increased substantially in the last few years. But we are still far from achieving our goal. We need to work harder so that we can increase the agricultural growth rate to 4% per annum” . Is it possible? If so how? The production shortage of wheat in India in 2006...

Food grain entitlement programme to start in the 150 poorest districts in the first year The Sonia Gandhi-led National Advisory Council (NAC) is yet to reconcile the government's assurance of a monthly provision of 25 kg of foodgrains for every family with its desire to enhance it to 35 kg. Nor has it been able to resolve the contentious question of dual pricing — Rs. 3 a kg for the poor...

Has the food ministry been misleading over changes to its subsidised grain sale in the open market, resulting in massive excess stocks still lying with the Food Corporation of India (FCI) and huge wastage of grain at at time of high food inflation? In a letter to the PMO this month, the food and consumer affairs ministry has acknowledged that wheat and rice to retail consumers in states under the...