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Dealing with grain glut

-The Business Standard   This year’s paddy procurement season has started with foodgrain stocks being more than double the buffer stock norms. An increase in grain stocks will put a strain on the already-scarce warehousing space, with consequences for safe storage and usability. Thus, excess holding of grains ought to be avoided. Maintaining a stockpile of nearly 55 million tonnes, with average economic cost of wheat and rice being Rs 18,000 per...

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Struggling to enter the BPL club by Jean Drèze

The Planning Commission's poverty straightjacket is but one of a series of obstacles faced by “aspirants” to the BPL status. Nothing illustrates the absurdity of current food policies more poignantly than the plight of Dablu Singh's family in Latehar district, Jharkhand. About two years ago Dablu, a young Adivasi who survived mainly from casual labour, fell from a roof at work and broke his back. He is paralysed for life and...

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Ban on onion export, off wheat

-The Telegraph   The Centre tonight banned onion exports to check rising retail prices, re-imposing the curbs only six months after it lifted them following a dip. At the same time, it lifted four-year restrictions on overseas sale of wheat and non-basmati rice to ease storage problems following record production last season. “Onion exports have been banned with immediate effect. The ban will be reviewed on a fortnightly basis,” food minister K.V. Thomas said...

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Food ministry against wheat exports by Liz Mathew & Ruchira Singh

India’s domestic wheat prices higher than international rates by around $100 per tonne; traders seek subsidy India’s food ministry will oppose a proposal to export wheat as it prefers to distribute the excess to the poor within the country, K.V. Thomas, Union minister of state (independent charge) for consumer affairs, food and public distribution, said on Thursday. “We want the wheat produced by our farmers to be distributed here first,” Thomas said,...

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Poor economics

The embarrassment of riches in grain stocks confronting the government is a problem of its own making. It is the product of ill-conceived policies on grain procurement, storage and distribution and mistimed decisions on opening and shutting of foodgrain exports. The grain stocks that have piled up as a consequence are far more than needed for any rational inventory and public distribution programme. Burgeoning food stocks pose problems of storage...

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