Television and print media have been awash with pictures of stacks of sacks of rotting foodgrain. And played in an almost infinite loop, these pictures become obviously powerful. They can become a call to urgent and revolutionary action. This perhaps accounts for the emotive appeal of the Supreme Court’s recent intervention on distributing this grain, and to keep procurement commensurate with available storage facilities. It does not, however, explain the...

Kaushik Basu proposes a new framework for release of foodgrains from government warehouses. Last year, official food inflation peaked at 21.05 per cent for the week ended November 28. Since then, it has eased — though the year-on-year rise of 10.86 per cent for August 21 is still in double-digit territory. Moreover, in absolute terms, the ‘food articles' index for the latest recorded week, at 303.3, is higher than the 296.1 level...

The wastage of millions of tonnes of food grain due to lack of storage facilities may have rocked parliament and prompted the Supreme Court to direct the government to distribute grains free of cost to the poor, but Kaushik Basu, chief economic advisor in the finance ministry, believes lack of warehouses is only part of the problem and is in no way responsible for the rising food prices. In ‘The Economics...

The wastage of millions of tonnes of food grain due to lack of storage facilities may have rocked parliament and prompted the Supreme Court to direct the government to distribute grains free of cost to the poor, but Kaushik Basu, chief economic advisor in the finance ministry, believes lack of warehouses is only part of the problem and is in no way responsible for the rising food prices. In ‘The Economics...

There’s suddenly a flurry of activity in Karotia, a nondescript village in West Bengal’s Burdwan district. Lately, a lot of politicians and state government officials have been visiting the village, and they say work on a nearly forgotten 14km irrigation canal is going to start soon. It’s been nearly 36 years since the state government first proposed to dig the canal, recalls Azizur Haque, the local panchayat chief. It was to...