“Huge subsidy on chemical fertilisers unmindful, useless” Small and marginal farmers have raised the demand for special allocation for organic farming and ecological fertilisation in the forthcoming budget, which finance minister Pranab Mukherjee will present on March 16. According to them, chemical fertilisers, the subsidy for which is likely to touch Rs 1 lakh crore in 2011-12,  are not benefitting the soil and are burdening them with high-cost cultivation instead. “The government...

Rural development minister Jairam Ramesh wants to sidestep categories proposed under the food security law to make sure that the welfare impact of the legislation isn’t nullified because a count that’s central to it hasn’t been completed across large parts of the nation. Ramesh wants 25kg of foodgrain given every month to 75% of the rural poor and 50% of the urban poor at subsidized rates. The National Food Security Bill, which...

MGNREGA 2.0 should really be MGNREGA 0.0 — it has been outdated from the start, five years ago It is a fact universally acknowledged that India is at a fiscal crossroads. It swerved quite significantly to populism over the last several years, and the consequences of this lurch are that the UPA’s own finance minister is (thankfully) losing sleep over the fiscal burden. More specifically, over the subsidy burden. As we all...

The National Food Security Bill has the potential to make a significant difference to the lives of the poor if properly implemented. However, the Bill in its present form has some easily correctible flaws that could cause huge problems in the future. A couple of simple amendments would greatly simplify the implementation and also allow innovation in the delivery of food subsidy. First, the proposed framework based on three categories of...

The government is planning to come up with a price protection fund to cushion the burden of food subsidy, which is expected to grow manifold under the new Food Security Bill. The proposed fund, under the ministry of food and consumer affairs, is a Budget proposal for 2012-13. Officials said the framework of the fund was at a nascent stage. “Some inferences are being drawn from the recommendation of National Farmers’ Commission...