Higher support prices for kharif pulses has resulted in a sharp jump in acreage under cultivation and production is estimated to rise to 6 million tonnes in the kharif season of the 2010-11 crop year The support price for wheat is likely to be hiked by a nominal Rs 20 in the rabi season, but the procurement rate for pulses could go up sharply, as the government wants to reduce dependence...

Global foodgrain prices are likely to remain high in the coming months despite high output estimates this season. Bad weather in Brazil and Russia and rising global demand have made the grain market sensitive. The assessment of the damage due to dry weather in Russia, Western Australia and South America and floods in India, China and Pakistan is yet to be done. This is offering grain traders speculative opportunity on futures...

The higher purchase price announced by the government has finally driven farmers to set aside more land for pulses this kharif, but experts doubt the approach can fill the increasing gap between demand and supply of this increasingly important source of protein for Indians. In the short-term though it could help reduce imports of pulses, running into thousands of crore every year. This year the acreage for pulses is pegged...

In response to the Supreme Court order on rotting foodgrain, the Centre has decided to distribute wheat and rice to poor families at Rs 2 and Rs 3 per kilo, respectively. The Ministry of Food and Public Distribution System is also expected to brief the apex court on the steps taken to address the problem. In a letter to all states, the Centre has urged the state PDS machinery to distribute...

Output of major crops, including sugar, will be better or equal to 2008-09’s production figures, but food prices are unlikely to return to that year’s levels. Food inflation may have permanently changed to stay on the higher side, economists have said. For a UPA government battling high prices, this could be a gloomy piece of news. A surplus monsoon has boosted acreages of all crops, according to food ministry figures. Output of...