-The Economic Times It is consoling that despite a deficit of 8% in south-west rainfall during 2012-13 compared to its long period average (LPA), agriculture's contribution to GDP growth is likely to be around 1.8%. It is also good news that the revised figure of agri-GDP for the 11th Plan as a whole is 3.6%, up from 3.3% estimated earlier. Gross capital formation in agriculture as a percentage of agri-GDP has almost...

-The Economic Times Food inflation in India, as measured by food articles price index, has averaged 11.3% for the period FY 2008-09 to December 2012, with a maximum of 15.6% in 2010-11 and minimum of 7.3% in 2011-12. In December 2012, wheat prices stood 23% higher than in December 2011, and rice prices 17% higher in the same period. Although this spurt in wheat and rice prices in the face of...

-The Business Standard The government runs out of money for fertiliser subsidy The government, according to recent newspaper reports, finds itself unable to clear the mounting subsidy dues of the fertiliser industry — the budgetary allocation for this purpose has already exhausted. This is as much a reflection on the shocking flaws in the Budget-making exercise for this financial year as on India’s misguided fertiliser subsidy policy. The arrears payable to...

-Outlook The Cabinet Committee on Economic Affairs (CCEA) today approved a urea investment policy that is likely to incentivise fertiliser firms setting up new plants and expanding existing capacity. India imports over 30 per cent of urea requirement and the policy aims at reducing that. But, it is unlikely to have any impact on existing prices. "The new urea investment policy has been cleared," sources said after the CCEA meeting here. The policy, which...

-The Business Standard Cabinet decisions on fertiliser are not enough Of the two fertiliser-related decisions taken by the Cabinet Committee on Economic Affairs at its recent meeting, the token hike of Rs 50 per tonne in urea prices is inconsequential, and the new mechanism for subsidising fertiliser is problematic. An increase of less than one per cent in urea prices will do little to bring down the subsidy bill or to reduce...