The 50-year-old farmer knew from experience that his onion crop was doomed when torrential rains pounded his fields throughout September, a month when the Indian monsoon normally peters out. For lack of modern agricultural systems in this part of rural India, his land does not have adequate drainage trenches, and he has no safe, dry place to store onions. The farmer, Arun Namder Talele, said he lost 70 percent of...

The Centre today promised a “comprehensive study” to gauge black money but told the Supreme Court it couldn’t reveal information on such cash stashed abroad because of “confidentiality” clauses in overseas pacts. The government explained its stand in an affidavit in the Supreme Court, which had earlier rapped it for not doing enough to deal with the menace. The National Institute of Public Finance and Policy, the National Institute of Financial Management...

After increasing slowly and steadily from historic lows, world rice prices tripled in just six months during 2007-08. The price surge caused much anxiety because so many of the world’s poor are rice consumers. And it caught many by surprise as market fundamentals were sound. Indeed, it was government policies, rather than changes in the production and consumption of rice, that drove the surge. This suggests that improved government policies...

Prime Minister Manmohan Singh today asked states to waive local taxes, including octroi, as well as reform the outdated Agriculture Produce Marketing Committee Act, or Mandi Act, to help control a runaway food inflation. The Prime Minister also called for dovetailing organised retail chains with farm supply chains. “Supply chains need to be strengthened and these need to be dovetailed with organised retail chains for quicker and more efficient distribution of farm...

Illegality in India today touches almost every economic activity. It is both systemic and systematic. The Indian ruling class faced its severest crisis of credibility in 2010. Its past caught up with it and skeletons and scams were spilling out of its closets. The scams have a symbiotic relationship with the black economy. The number of scams is growing and so is the size of the black economy, which has reached...