One of the first issues the reconstituted National Advisory Council (NAC) will have to deal with is the proposed National Food Security Act (NFSA). Given the inability of the government to control food prices that remain unacceptably high and the scant regard the ruling United Progressive Alliance has shown for food security, it should be taken up on an urgent basis if the government is to preserve its credibility among...

It is the availability of adequate foodgrains to meet the mandatory requirements under the proposed National Food Security Bill that worries the government, not the enhanced subsidy such a move would entail. From what the government is planning it appears that the subsidies on petroleum products would go to meet the requirement of providing cheap foodgrains to the poor under the Public Distribution System (PDS) and to bring the Above...

Bowing to pressure from the political leadership of the Congress, the government will consider making food security universal, but at a higher price for the rich. Food security was an electoral promise of the Congress before the 2009 polls, but the initial draft of the Bill said that it would apply only to the poor. After Congress president Sonia Gandhi refused to accept the Bill in that form, an empowered group...

The government may shift to per capita allocation of foodgrains and raise the price of wheat and rice meant for the Above the Poverty Line (APL) population under the Public Distribution System (PDS) to meet the objectives of the proposed National Food Security Bill. Raising the price of APL foodgrains is an “unavoidable adjustment,” the Planning Commission has said in a note it has prepared for the Sonia Gandhi-headed National...

The recent announcement of minimum support prices (MSP) for various Kharif crops has once again called into question certain aspects of the official policy towards agricultural pricing. True to pattern, it has come in late. The monsoon arrived at least a week before, and many farmers might have already chosen the crops to sow. The world over governments through their price support programmes, consisting of assured minimum prices and subsidies,...