The Central Statistical Organisation estimate of overall GDP being likely to grow at 7.2 per cent this year has brought back the confidence of the industry and policymakers that the economy has truly turned the corner. But the growth of the farm sector is almost flat (-0.2 per cent), though this too is a pleasant surprise given that it was exposed to the worst drought since 1972. The real worry...

Finally, they have bitten the bullet on fertiliser subsidy. For the past three years, the Union government has agonised on the issue of mounting expenditure on this account and has not had the courage to cut the subsidy. While Finance Minister Pranab Mukherjee announced his intent to introduce a nutrient-based subsidy (NBS) in his last Budget Speech, he has finally shown courage to do so on the eve of this...

The government's decision to hike urea prices, as part of its move to rationalise subsidies, has upset farmers. Farmers are heavily dependent on urea for their production. They say it will only increase their burden. Commenting on the Cabinet's decision, one of the farmers in Punjab said, "It is a big setback for the farmers as Punjab yields maximum production." Farmers are already under so much debt, with the increase in the...

While the jury is still out on whether Environment Minister Jairam Ramesh did the right thing by putting a moratorium on the use of Bt brinjal, or whether he simply played to the gallery by only taking into account the concerns of the environmentalists, policy-makers need to ponder over some other implications. The introduction of Bt cotton, for instance, led to production more than doubling between 2002-03 and 2007-08, from...

Without fertilisers, said Normal Borlaug, the world would need two billion people to volunteer to just disappear.  Obviously, it makes sense to increase the supply of fertilisers rather than to look for those volunteers. Sense, however, is in short supply in India’s fertiliser policy , and we have a supply shortage of the stuff. The domestic price of fertiliser has been static since 2002 and the domestic industry has seen...