The ministry of rural development has demanded a nearly 60% increase in the allocation for its marquee job guarantee scheme in the forthcoming Union budget for fiscal 2011-12. The ministry has sought an allocation of around Rs. 64,000 crore, up from Rs. 41,100 crore, for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), a ministry official said, requesting anonymity. MGNREGS, the flagship programme of the Congress-led United Progressive Alliance (UPA) government...

Global wheat harvests may trail demand for a second year, spurring hoarding and further price gains, said the United Nations. “Whenever you get the market as tight as we are now, hoarding becomes widespread,” Abdolreza Abbassian, a senior economist at the UN Food and Agriculture Organization, said in an interview by phone from Rome. Wheat, corn and soybeans soared to the highest levels since 2008 yesterday as a U.S. government report showed...

Food inflation dropped sharply to 13.07% for the week ended January 29 from 17.05% in the previous week. According to data released by the ministry of industry and commerce on Thursday food inflation declined to a seven-week low due to decline in the prices of pulses and potatoes. On an annual basis, prices of potatoes declined 8.87%, while pulses fell 8.63% and wheat by 3.58%, the government data said. Although the...

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...

Buoyed by bumper production estimates this year, Agriculture Minister Sharad Pawar today favoured export of certain commodities like non-basmati rice, sugar and onion to protect the interests of the farming community. “Generally we feel, we should take a total liberalised approach on export of certain items...Farmers are raising concern that prices of some commodities are going down,” Pawar told reporters here. Citing onion case as an example, Pawar said farmers, who were...