Major foodgrains producing states have been the worst hit by rising prices, thanks to the Centre’s decision to pay more to farmers for their produce. Although inflation, as measured by the consumer price index (CPI), has been in double digits for nearly six months, there are several states where CPI in the rural region has been around 20%. A look at state-wise consumer price index numbers shows that pre-dominantly agri-based...
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Can we achieve 4% farm growth? by T Nanda Kumar
The prime minister, in his Independence Day address said: “I am happy that the growth rate of our agriculture has increased substantially in the last few years. But we are still far from achieving our goal. We need to work harder so that we can increase the agricultural growth rate to 4% per annum” . Is it possible? If so how? The production shortage of wheat in India in 2006...
More »Calories, prices and incomes by Raghav Gaiha, Raghbendra Jha and Vani S Kulkarni
Various recent studies point to a puzzle. Despite rising incomes, there has been a sustained decline in per capita calorie intake. In an important contribution , A Deaton and J Dreze (‘ Food and Nutrition in India: Facts and Interpretations’ , Economic and Political Weekly, XLIV (7), 2009) offer a detailed analysis of the decline in calorie intake in 1983-2004 . Average calorie consumption was about 10% lower in rural...
More »NAC meet tomorrow to discuss draft of food security bill by Smita Gupta
Food grain entitlement programme to start in the 150 poorest districts in the first year The Sonia Gandhi-led National Advisory Council (NAC) is yet to reconcile the government's assurance of a monthly provision of 25 kg of foodgrains for every family with its desire to enhance it to 35 kg. Nor has it been able to resolve the contentious question of dual pricing — Rs. 3 a kg for the poor...
More »Pawar rules out free foodgrains by Vinaya Deshpande
Union Minister for Agriculture Sharad Pawar on Saturday dismissed the possibility of free foodgrains distribution. “The government already spends Rs. 66,000 crore on foodgrains subsidy. We buy wheat from farmers at Rs. 15 a kg, but sell it to the Antyodaya population at Rs. 2 a kg. How can we sell any cheaper than that?” He was speaking at a meeting of the Maharashtra Pradesh Nationalist Congress Party (NCP). Free distribution of foodgrains...
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