Although rising food prices remain a critical concern, finance minister Pranab Mukherjee is counting on better supply management, improved output of pulses and rice, better access to rural credit and strengthening of existing agricultural schemes to bolster India’s farm output. The rural economy employs about 60% of India’s work force, contributes about 17% of gross domestic product, and is expected to post 5.4% growth over last year, according to advanced estimates...

India's finance minister announced on Monday a food security bill for 2011/12, a measure that would provide cheap grains for millions of India's poor but which has sparked worries of a huge fiscal cost. It was one of the first signs of populism in the annual budget as Prime Minister Manmohan Singh confronted high prices and corruption scandals as well as elections in five states this year. In his ongoing budget speech,...

Shifting the focus away from the Mahatma Gandhi National Rural Employment Guarantee Act, the Union Budget has sought to give greater thrust to it other flagship programme Bharat Nirman, covering six sectors, by allocating an additional Rs. 10,000 crore for 2011-12 to provide rural broadband connectivity to all the 2.5 lakh panchayats within the next three years. Finance Minister Pranab Mukherjee has made a total allocation of Rs. 58,000 crore, marking...

Is the chemical fertilizer-based food production system sustainable? As a result, what happens to the soil and the larger issue of food security? After a raging debate, the government finally decided to hike the chemical fertilizer subsidy, to catch up with spiralling fertilizer prices in the global market. Also, there is talk about bringing urea under the Nutrient Based Subsidy (NBS) system and decontrolling its prices. Obviously, the fertilizer industry...

Ashok Gulati, Director in Asia for the International Food Policy Research Institute (IFPRI), was appointed Chairman of the Commission for Agriculture Costs and Prices for the Ministry of Agriculture , Government of India. Based in New Delhi, he will be involved in developing appropriate price policy and marketing structures for major agricultural commodities in the country. Gulati’s appointment begins on March 1. Bart Minten will be acting director of the New...