One of the most intriguing features of India's agrarian economy in recent years is the persistence of agrarian distress in many regions, even while agricultural credit flow has risen sharply. Rising flow of credit to agriculture is normally associated with buoyancy in the farm sector. A closer look at the data on agricultural credit reveals that what is termed agricultural credit may have very little to do with agriculture, the...

The top 20% of India’s population has a more than 50% share of the national income in 2009-10, up from 36.7% in 1993-94, says a study by the National Council for Applied Economic Research, or NCAER. This would seem to confirm the charge that income disparities have increased in the reform years, 1991 onwards, and the rich have got richer as a freer economy has created more opportunities. According to...

JHABUA, India — Inside the drab district hospital, where dogs patter down the corridors, sniffing for food, Ratan Bhuria’s children are curled together in the malnutrition ward, hovering at the edge of starvation. His daughter, Nani, is 4 and weighs 20 pounds. His son, Jogdiya, is 2 and weighs only eight. Landless and illiterate, drowned by debt, Mr. Bhuria and his ailing children have staggered into the hospital ward after falling...

The NAC's recommendations on food security measures take heed of the fact that PDS reform is dependent on the availability of enough foodgrains. Three major elements of the United Progressive Alliance government's commitment to provide food security to the people are reforming the public distribution system (PDS), raising foodgrain productivity and production, and creating a decentralised, modern warehousing system. Ideally, the reforms in the PDS should have come first for the availability...

The Sharad Pawar-headed food ministry has set itself up for a confrontation with the Sonia Gandhi-led National Advisory Council on the National Food Security Bill. Pre-empting NAC’s draft on NFSA, the food ministry has decided to implement the Tendulkar committee report on poverty numbers which fall far below the figures that the NAC formula would have reached. In its last meeting, NAC had proposed and Congress president Sonia Gandhi had...