UNLESS THE prices of vegetables skyrocket and become a scandal — as they have over several weeks now, or as did the price of sugar last year — little in the out-of-sight world of Indian agriculture excites the imagination of the city folks, who influence, rather disproportionately, everything from government policies to newspaper content. Few of those who enjoy a hearty meal and wax lovingly on their favourite dishes can...

Food inflation remains extraordinarily high at 17.79%. The government emphasises supply problems caused by last year’s drought, But a bigger and less reversible problem is government-led inflation through big increases in the Minimum Support Prices (MSP). The MSP for wheat and paddy rose only modestly between 2002-03 and 2005-06 , from Rs 620 to Rs 650/ quintal and from Rs 530 to Rs 570/quintal respecticely. But after that the MSP shot...

WELL before Budget 2010-11 was presented, inflation had emerged as the principal economic problem in the country. With food-price inflation running at close to 20 per cent, even the United Progressive Alliance (UPA) government at the Centre had been forced to recognise it as a problem that deserved as much attention as the objective of achieving a 9 or 10 per cent rate of growth, if not more. In fact,...

The economist and political commentator who was appointed to a four-member team of the UN to recommend reforms to the global financial system critiques Budget 2010 Economist and political commentator Prabhat Patnaik, currently vice-chair of the Kerala Planning Board, is a strong critic of the government’s economic policies. In 2008, Patnaik, who has taught at JNU since the 1970s, was appointed to a four-member team of the UN to recommend...

Forget the rhetoric, the FM’s left little for core social sectors The Union finance minister’s enthusiasm in marking the roadmap to financial discipline and pushing reforms in Budget 2010 is somehow missing in his proposals for inclusive growth. These proposals lack the required homework—in referring to relevant literature, including some recent government reports, and in making estimates of the required funds—and certainly do not reflect much commitment to inclusive growth. Agriculture—which...