The rise in global wheat prices by almost 50% in less than two months as commodity markets factor in a sharp drop in Exportable surplus has not touched India, among world’s biggest producers and consumers of wheat. What’s more surprising, domestic futures prices too are unlikely to show any appreciable rise, going by the trend in India’s commodity markets. Barring minor blips, August and September wheat futures at NCDEX, largest exchange for...

One of the most intriguing features of India's agrarian economy in recent years is the persistence of agrarian distress in many regions, even while agricultural credit flow has risen sharply. Rising flow of credit to agriculture is normally associated with buoyancy in the farm sector. A closer look at the data on agricultural credit reveals that what is termed agricultural credit may have very little to do with agriculture, the...

The National Advisory Council's move to restrict universalisation of the PDS to the most disadvantaged districts may ultimately end up limiting its impact. RECENT weeks have seen rather contradictory statements on the challenge of ensuring food security and the set of feasible initiatives for managing the food economy. To start with, the National Advisory Council (NAC), which recognises the need for a universal public distribution system (PDS), and which was expected to...

Today, the Supreme Court of India will hear arguments in what is emerging as a national disgrace: One of the world’s largest stockpiles of foodgrain going to rot and rodent because the government lacks the vision, ability and commitment to either store it properly or distribute it to the poor. Let me recap what I reported on the front-page of this paper last month: About a third of India’s grain reserves,...

Their ongoing negotiations remain shrouded in secrecy, but there are already reports that India and the European Union (EU) will have a free-trade agreement ready by the end of August, and that they will be putting signatures to it before the end of 2010. Yet it is a potential development that is causing more nervous chatter than joyous jitters here in India, where drug manufacturers in particular have raised concerns over...