-The Hindu Business Line Govt’s production and distribution processes are out of sync with consumption patterns Of late, with growing income and awareness about nutritious food, there has been a noticeable decrease in the consumption of rice (a high-carb food) in Indian households. This change in consumption pattern, however, is not reflected in India’s agriculture policy which continues to revolve around rice and wheat. Moreover, current policies related to production, procurement, storage...
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How Well Does India Understand Inflation? -Deepanshu Mohan
-TheWire.in Policy makers should conduct deeper analysis on the many subtle factors that shape inflation and its effects on the Indian economy. In 1923 when Rudolf von Havenstein, the president of the German Reichsbank (later known as the Deutsche Bundesbank), recklessly initiated a money printing drive in response to the German government’s demand to spend more money, Germany was inevitably embroiled in a bout of hyperinflation and its worst crisis of the...
More »MSP hike: A pay cut for farmers? -Sayantan Bera
-Livemint.com Nominal hikes in crop support prices means that farmers are bearing the burden of government policy to keep food inflation in check New Delhi: The Narendra Modi led government has set a target to double farm incomes by 2022, but in the past three years it announced only nominal hikes for support prices of rice and wheat. What’s more: the raises were lower than the prevailing retail inflation, meaning declining...
More »In fact: There is a drought in many parts of India. Why hasn’t it been noticed? -Harish Damodaran
-The Indian Express Because this time, it’s only rural producers, not urban consumers, who are feeling the heat This time’s drought has been a most unusual one. Even with three consecutive bad crops (kharif 2014, rabi 2015, and kharif 2015) and a fourth not-so-great one (thankfully, there’s been no big damage from the unseasonal rain and hail unlike in March 2015), annual consumer food price inflation is only 5.3 per cent. In the...
More »Highlights of Union Budget 2016-17
-The Hindu In case you missed the Budget, here's a round-up. Affirming that the economy is right on track, Finance Minister Arun Jaitley presented the Union Budget for 2016-17. Citing that the CPI inflation has come down to 5.4% from 9 plus, he said it is huge relief for the public. Tax Infrastructure and agriculture cess to be levied. Excise duty raised from 10 to 15 per cent on tobacco products other than beedis 1 per...
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