Chief economic advisor to the finance ministry Kaushik Basu says the government should step in and acquire land for development projects to protect the interests of farmers. He also explains why the government cannot tackle food inflation by distributing free foodgrain among the poor. Excerpts from interview with ET: A large number of land-intensive project have run into opposition. Could it actually undermine our infrastructure thrust and growth? There is...

The Centre is all set to launch a scheme of granting domestic LPG connections free of cost to the below poverty line (BPL) families. The scheme, covering around 35 lakh families every year, is likely to be launched on October 2 (Gandhi Jayanti). The initiative was taken by Minister of State for Petroleum and Natural Gas Jitin Prasada. Now, a consumer has to pay Rs. 1,250 as security deposit for getting an...

Exaggeration. Exaggeration. Exaggeration.  I was subjected to this tiresome litany from various angry officials and a couple of politicians after one of their colleagues — who will remained unnamed — leaked to me the perilous state of India’s granaries and the rotting foodgrain within. On July 26, I reported how 50,000 metric tonnes of wheat and rice had rotted away, unfit even for animals; how 17.8 million tonnes, enough to feed...

In pushing for a greatly truncated PDS, the Food Security Bill proposed by the NAC, which has many right-to-food activists, undermines the PDS itself. ENSURING food security was the big promise of United Progressive Alliance-2. The promise to enact legislation to ensure a minimum quantity of affordable food to all poor households in the country was part of the election manifesto of the Congress party that leads the government. The 100-day...

Even as the prime minister protests his inability to distribute food free of cost to the poor, the overflowing food stocks seem set to lead to another year of blockbuster expenditure on the public distribution system. According to numbers from the department of food and public distribution system (PDS), the government spent Rs25,600 crore on food subsidies during just the first four months of the year. The amount — higher than the...