With the inflation rate of pulses still in double digits for more than a year, the government today said the supply of pulses would remain a critical problem for another two to three years. The government is expecting an increase of two million tonnes (mt) in production of pulses in the current crop year (July 2010-June 2011). “So far as pulses are concerned, it is going to be a critical problem not...

India’s top grain-producers Punjab and Haryana will raise planting of basmati rice as floods have washed away the recently sown regular grades, farmers and trade officials said on Monday. Basmati rice can be planted late, but yields are much lower than regular grades, with farmers also having to face fluctuating market prices, unlike common rice grades that official agencies buy at fixed, attractive rates. “Paddy output will certainly drop this year. However,...

Hopes of an early respite from mounting price pressures have been belied by inflation numbers released on Wednesday. The wholesale price index for June 2010 is up 10.55% against a rise of 10.16% in May. Worse, the number for April has been revised up from 9.59% to a 19-month high of 11.23%. If the same order of revision continues , the June number could well cross 12%, a dangerously high...

Following a hike in the prices of petrol, diesel, gas, milk prices have also gone up. Between January 2007 and March 2010 the price of milk rose seven times in Delhi. The story is similar elsewhere in the nation too. In the last one year, prices increased from Rs 17 to Rs 22 a litre. In some cities, like Mumbai, the rise has been steeper. Earlier, it was pulses that were burning...

India expects a strong rebound in farm output, which will substantially reduce food price inflation that has soared since last year when the country’s worst drought in 37 years hit crops, the agriculture minister said. This year’s June-September monsoon was 16% below normal last month, but rainfall has revived significantly, calming fears of shortages and higher prices. India also needs to ease tight controls on the sugar sector, agriculture minister Sharad Pawar...