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Runaway food prices highlight the need to unshackle the farm sector

-The Times of India Why isn't aam admi smiling? The question's relevant, since some cheer's apparent in government circles over wholesale price index-based inflation falling to 6.62% in January. Headline inflation, it's said, will drop further by March-end. To common people, the WPI inflation figure's a meaningless number. If WPI inflation's dipped a fourth successive month, food prices have been riding high for far longer. Policymakers periodically recommend release of foodgrains from...

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Untenable critiques sowing confusion on supposed ill-effects of retail FDI-Jagdish Bhagwati & Rajeev Kohli

-The Economic Times Retail sector liberalisation has been revived and included in Prime Minister Manmohan Singh's package of big-bang reforms announced recently. This was to be expected as an element of the package since the influential minister Jairam Ramesh, who has access to Sonia Gandhi and is identified with her NGO-dominated set of advisers whose knowledge of economics is outweighed by their enthusiasm, had already announced his conversion to retail sector...

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Switch from farm subsidy to farm investment-Ashok Gulati

-The Economic Times With a weak monsoon, farmers and farm labour, agri-investors and policy makers, everyone is looking up in the sky and praying for more water to pour. Farm analysts are debating whether this will lead to a drop of 16 million tonnes of foodgrain, as it happened in 2009, or 38 million tonnes, as it did in 2002. NCAER is projecting 20 million tonnes drop in grain production in...

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The tying of farm aid

-The Business Standard Use central funds to push agri-reform in states The agriculture ministry’s reported decision to tie the state-wise allocation of funds from the National Agriculture Development Plan (NADP) to the states’ progress on agri-marketing reforms seems likely to benefit both farmers and consumers. Yet the gains from releasing central assistance only conditionally could be substantially augmented. If the Centre is serious about reform, it should expand this conditionality to other...

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Policy Distortions Hurt Agriculture by Bibek Debroy

Food price inflation, and inflation in general, has become less of an issue. But it isn’t an issue that will go away. Give it till June and inflation is likely to inch up again. Competition is a good antidote against price increases. It ensures efficiency and reduces price volatility. Logically, food price inflation should trigger and stimulate agricultural reform, so there is competition and supply-side changes can occur. But in...

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