The rural poor in Andhra Pradesh, a State showcased as a model for SHG-bank linkage, are caught in the vortex of microfinance. WITHIN a decade of their coming into operation, microfinance institutions (MFIs) have dealt a serious blow to the economy and the well-being of thousands of families in rural Andhra Pradesh. Harassment by their collection agents has allegedly driven at least 60 borrowers to death, and the number is...

Stability in markets will be determined by size of next year's crop The Food and Agriculture Organisation (FAO) has warned about a further increase in global food prices in 2011 if there is no significant increase in production of major food crops. In the latest edition of its “Food Outlook” report, the agency observed that the rise in global prices, all of which was accruing in the second half of 2010, owing...

In India, commercial banks, both public and private, are required to direct a large chunk of their net credit to designated “priority sectors” seen as having a positive impact on India’s economy, and wider society – to ensure funds flow into areas the government deems important, but might otherwise be neglected. These sectors – designated by the Reserve Bank of India – currently include broad areas of agriculture, small scale industries,...

Global food import bills may pass the $1 trillion mark in 2010, a level not seen since food prices peaked in 2008, says a new United Nations report, which warns that harder times could be ahead without a major increase in food production next year. According to the latest edition of the Food Outlook report, released by the UN Food and Agriculture Organization (FAO), food import bills for the world's poorest...

The Rajasthan government today said it would index the payment for work under the National Rural Employment Guarantee Act to the rate of inflation. This would be the first such move by any state since the Centre froze minimum wages for the scheme two years before, at Rs 100 a day. This is one of the conditions the government agreed to while arriving at a settlement with the Mazdoor Kisan Shakti...