The World Bank has backed a controversial proposal to replace foodgrain allotment under the public distribution system with a system of direct cash transfer. The bank, which supports social security schemes in India, today said poverty reduction had been low and overall returns on spending to eradicate poverty had “not reached their full potential”. It attributed the low reduction to “high leakage” in the PDS system and its weak implementation mechanism. Earlier,...

A Working Group (WG) set up by the Sonia Gandhi-led National Advisory Council (NAC) has drafted a detailed note on land acquisition and relief and rehabilitation which seeks not only to go beyond the pending government bills on the subject, but recommends that the two be merged into a single National Development, Acquisition, Displacement and Rehabilitation Act. Interestingly, it rejects the Haryana model that Congress leaders only too often hold up...

The Supreme Court stole a march on Saturday over a wavering UPA with its direction to the government to consider altering the poverty line and distributing 5 million tonnes of foodgrain to the poorest 150 districts. With the proposed Food Security Act being lobbed back and forth between the government, the Congress leadership and the National Advisory Council, the apex court's order dented UPA's pro-poor image. It might have been...

The chairman of Commission for Agricultural Costs and Prices (CACP), Ashok Gulati, is a well-known proponent of reforms and an agricultural economist with diverse experience. Prior to taking charge of CACP, he was the International Food Policy Research Institute director in Asia. In an interview, Gulati spoke about the urgency for initiating reforms in the agricultural sector and made a strong case for intervention to check falling wheat prices either...

-Press Trust of India   The food ministry has opposed the proposal of the Commission for Agriculture Costs and Prices (CACP) to hike the support price of paddy by R160 per quintal to R1,160 per quintal for 2011-12 crop year. Paddy minimum support price (common grade) was at R1,000 per quintal last year. The CACP, which suggests minimum support price (MSP) of 40 agri-commodities, has recommended support price for paddy (common grade)...