The Planning Commission's laughable estimates of the ‘poverty line' follow from a mistake in method that it made 30 years ago and has clung to ever since. The affidavit that the Planning Commission recently submitted before the Supreme Court stating that a person is to be considered ‘poor' only if his or her monthly spending is below Rs.781 (Rs.26 a day) in the rural areas and Rs.965 (Rs.32 a day) in...

-The Hindu Business Line   Input subsidy expenses not contributing to boost productivity The World Bank has said that South Asia's foodgrain stock management, especially in India, needs to improve to tackle inflation. In its focus on food inflation in South Asia, the bank said that high stocks have led to high wastage due to inadequate storage capacity and technology. According to World Bank's estimates, the Food Corporation of India lost 10-16 million tonnes...

-The Hindu   ‘Panel's affidavit skirted main issues of why should there be poverty line that determines BPL “caps” and to re-consider poverty line' The Right to Food Campaign on Thursday asked the Planning Commission Deputy Chairman Montek Singh Ahluwalia to explain how the per capita poverty line expenditure of Rs. 25 per day in rural and Rs. 32 per day in urban area could be normatively ‘adequate' as the panel had claimed...

The state's rice bowl is left empty An unviable minimum support price (MSP) for rice has forced farmers in Andhra Pradesh to leave their lands fallow. The movement is spreading to other states. “Farming never pays” is a familiar slogan among agriculturists across the world, and especially so in India. Nevertheless, many continue to cultivate their fields year after year, barely eking out an existence, toiling in the hope that the tide...

-The Business Standard   After generating much controversy back home on the Planning Commission's “unrealistic definition” of poverty line, India had to field some tough queries in Washington over the matter. Chief Economic Advisor Kaushik Basu said the government was looking at various parameters of poverty estimates to provide better coverage to the vulnerable section through a proposed food law. "...now we are going to go into a new food security programme, where we...