In India, people are upset about onions. Expensive cooking oil is causing hoarding in China, a practice banned by the government. Meanwhile, flour and bread are the main source of riots in Algeria and now Jordan. Worries over food prices are gathering pace and triggering alarm among politicians across the world. For there is nothing more likely to bring down a government than ignoring starving citizens, as Marie Antoinette found to...

The problem is all pervasive as the prices of almost all food items have been rising In a scenario that is all familiar in India and for that matter in many other countries too, rising food prices have become an extremely sensitive issue with major political and social ramifications that go well beyond the economic ones. Not that the economic consequences are unimportant. From the macroeconomic management point of view, rising food...

After announcing food prices had reached record levels last week, the United Nation’s (UN) Food and Agriculture Organisation (FAO) is now trying to play down concerns about shortages. The FAO’s representative for Asia and the Pacific region, Hiroyuki Konuma, admitted that food supply and demand were tight but said there were sufficient grain stocks to feed populations. Though certain foods such as sugar, meat, corn and soybeans are selling at a...

What’s Going Wrong?     * Market intelligence remains a weak link; farm policies rarely reflect correct scenario     * Extensive damage to crop in Maharashtra not factored in promoting onion, tomato exports     * Middlemen make capital while farmers realise 10-15% margin, not enough to recoup losses     * Government market intervention capacity limited to foodgrains and pulses **** India’s worst-kept secret was finally revealed when the government threw up its hands in despair in the...

Farmers' protesting ban on cotton and Onion Exports on Monday created a few moments of panic as they set ablaze a trolley-full of cotton some 200 metres from the Nagpur airport building. The situation was soon brought under control and farmers dispersed after the symbolic protest. Over 2000 farmers led by Bacchu Kadu, the maverick independent MLA from Achalpur in Amravati district, marched through the busy Wardha road to airport...