Chastened by the 'poverty line' controversy painting the Centre as insensitive to 'aam aadmi', the government is wary of challenging a Karnataka high court order which slammed the state for paying MGNREGA workers less than the minimum farm wages.  The court said that job scheme wages could not be less than the minimum agricultural wages and ordered that workers be paid the arrears.  The HC order would put an additional burden of...

There are two ways to identify the poor: in terms of how much they lack, and in terms of what you can do for them. To begin with, India's poverty line was set at the total (food and non-food) expenditure observed for the person who was just about consuming a nutritionally adequate number of calories. In subsequent years, rural and urban poverty lines were adjusted to take inflation on board, without adjusting...

Planning Commission’s affidavit to the Supreme Court states that adjusting for inflation, the poverty line for an urban person is Rs 32.5 per day per person and for a rural person it is Rs 29.3 per day per person. This has raised an outcry in media and the urban middle class, who consider them outrageously low. Based on these poverty lines, Planning Commission estimates that there are 40.74 crore persons...

-The Hindu Business Line   Input subsidy expenses not contributing to boost productivity The World Bank has said that South Asia's foodgrain stock management, especially in India, needs to improve to tackle inflation. In its focus on Food Inflation in South Asia, the bank said that high stocks have led to high wastage due to inadequate storage capacity and technology. According to World Bank's estimates, the Food Corporation of India lost 10-16 million tonnes...

The Planning Commission's laughable estimates of the ‘poverty line' follow from a mistake in method that it made 30 years ago and has clung to ever since. The affidavit that the Planning Commission recently submitted before the Supreme Court stating that a person is to be considered ‘poor' only if his or her monthly spending is below Rs.781 (Rs.26 a day) in the rural areas and Rs.965 (Rs.32 a day) in...