The United Progressive Allianace (UPA) government at the Centre has asked the Union Agriculture Ministry to provide diesel subsidy to farmers along with the Minimum Support Price (MSP). Minister of State for Petroleum Jitin Prasada announcing the new method said, now the government wants to provide compensation to farmers on diesel along with the MSP. Mr Prasada asked his ministry to consider making a provision for the increased price of diesel, while...

A demand to reintroduce a universal Public Distribution System (PDS) in the country appears every now and then. Its proponents argue that universal access is necessary for ensuring food security, for better control on prices and for eliminating (at least partially) the evils of exclusion errors in the targeted PDS. The question is: what are the operational implications of access for all citizens to subsidised foodgrain? They are currently allocated as...

Furious debates among policymakers about the proposed national food security law largely revolve around its financial repercussions. The Planning Commission is finally coming around to accepting the Tendulkar Committee’s estimates of 37.2 per cent BPL population or 8.5 crore BPL households. The fiscal burden in implementing the food security law for 37.5 per cent BPL population, with each household being provided 35 kg food grains, is estimated to be Rs...

The Vidarbha Jan Andolan Samiti (VJAS) has welcomed the government decision to raise the minimum support price (MSP) for pulses for the kharif season. The increase, which ranges from Rs 380 per quintal to Rs 700 per quintal, is part of the government’s strategy to boost production of pulses in the country. The hike in MSP for pulses this year is significant, both in terms of absolute increase and percentage...

It is the availability of adequate foodgrains to meet the mandatory requirements under the proposed National Food Security Bill that worries the government, not the enhanced subsidy such a move would entail. From what the government is planning it appears that the subsidies on petroleum products would go to meet the requirement of providing cheap foodgrains to the poor under the Public Distribution System (PDS) and to bring the Above...