-The Business Standard Skimmed milk powder 'buffer' might raise prices  The government’s proposal that a buffer stock of skimmed milk powder (SMP) be created in order to minimise volatility in milk prices is so unsound a proposition that it should be shelved. The proposal, sent to the inter-ministerial group on inflation by the food ministry, involves keeping a reserve stock of SMP with milk-processing units by offering them a handsome subsidy. The...

-PTI Economic prosperity is fuelling food inflation in the country, Chief Economic Adviser Raghuram Rajan today said while making a case for increasing productivity to fight price rise. In his first media interaction after assuming charge, Rajan justified the diesel price hike saying there is a need to link domestic fuel prices with international rates to curb fiscal deficit. "One of the concerns of the last few years has been food inflation, which...

-The Hindustan Times In response to the widespread protests and the nation-wide hartal last Thursday, Prime Minister Manmohan Singh addressed the nation on Friday and tried to explain why these decisions had become inevitable. The thrust of his argument was, “We need a revival in investor confidence, domestically and globally.” For this, the current high fiscal deficit must be contained and, hence, the hike in the prices of diesel and cap on...

-The Business Standard Cautious optimism about the revival of the monsoon  A progressive improvement in the monsoon, after a dismal June that saw rainfall deficient by over 30 per cent, has eased some worries over kharif crop production. Since then the rainfall deficit has been halved to 15 per cent, dispelling fears of a situation as bad as in 2009, when severe drought lowered foodgrain production by seven per cent. In addition,...

-The Indian Express As drought pushes up food prices, India must invest in new irrigation methods The speculation on the delay of the monsoons and below-normal rainfall this year is not new to India. But the drought in the maize belt of the United States — that is, in the Midwest — was unexpected. The impact of the drought will be felt on wheat and soya bean production. This will eventually lead...