Consumers may have to pay substantially more for pulses, oilseed, and rice in the coming months if the government accepts the recommendations of an expert panel to increase farm-gate price of these commodities by up to 30%, further stoking food inflation. The Commission on Agricultural Costs and Prices (CACP), under the ministry of agriculture, has recommended a 25% rise in the floor price of cotton, 16% rise in paddy, 30% rise...

The RBI’s monetary policy statement for 2012-13 has said that penetration of banks in rural areas has increased. It said that banks are now providing banking services in rural areas through 1,38,502 outlets. This includes 24,085 rural branches, 1,11,948 business correspondent outlets, and 2,469 outlets through other modes. In early March 2010, banks had only 21,475 brick and mortar branches in rural areas. No-frills accounts No-frills accounts have increased to around 99 million with...

-The Times of India Taking a cue from the RBI governor D Subbarao, market leader Indian Oil Corporation indulged in grand standing on Tuesday by saying state-run retailers would raise petrol price by almost Rs 10 per litre, if the government did not reduce excise duty or did not compensate their Rs 49-crore daily loss on the fuel. "We have been very patient, not raising prices since December despite our cost of...

Rising wages in both rural and urban India have contributed to inflation, and managing price levels when wages are rising is key to deriving benefits from higher growth, the Reserve Bank of India has said.  "The pressure on generalised inflation from sustained increase in wage costs has been one important characteristic of the recent high inflation episode. Wage increases for unskilled labourers in rural areas continue to be at a rate...

-PTI While petrol prices are market-linked, govt fixes LPG, kerosene and diesel rates, which results in huge expenditure on subsidies Making a case for raising prices of diesel, kerosene and LPG, the Reserve Bank today said hike in rates of petroleum products is necessary to arrest fiscal slippages. "Overall from the perspective of vulnerabilities emerging from the fiscal and current account deficits, it is imperative for macroeconomic stability that administered prices of petroleum...