-The Hindu The government’s claim that it will dampen inflation, bring higher prices for farmers and lower prices for customers may be somewhat exaggerated With the intention of signalling a strong commitment to reforms, the UPA government has announced a hike in the price of diesel and liberalisation of foreign direct investment (FDI) in multi-brand retail, justifying the measures as growth-enhancing and inflation-dampening. They have been termed bold by India’s corporate sector...

-PTI India's foodgrains production is projected to decline by 10 per cent in the kharif season of this year at 117.18 million tonnes due to deficient monsoon and drought in some states. However, the government expects to make up for the decline in output during the Rabi season (winter sown crop). Foodgrain output stood at 129.94 million tonnes (MT)in last year's Kharif season. The production of rice - a major Kharif crop -...

-The Business Standard Govt controls will raise prices of pulses and oilseeds The food and consumer affairs ministry has proposed that stockholding limits on pulses and edible oils be retained for another year beyond October. In addition, it wants these curbs extended to rice, too. This is misguided, and will cause more problems than it wants to resolve. Instead of controlling prices, as is intended, these restrictions on trade will instead...

-The Hindu Instead of rigid targeting, the government must build on the success of the public distribution system which is quietly becoming a significant means of social support In earlier writings, we have drawn attention to the quiet revival of the public distribution system (PDS) in many States during the last few years. Market prices of PDS commodities — mainly rice and wheat — have sharply increased, giving people a much greater...

-The Times of India Union steel minister Beni Prasad Verma's claim, that he was happy with inflation as higher food prices have helped farmers, borders on the ludicrous. A few weeks back P Chidambaram also attracted flak when he said that consumers have to pay more for sugar, rice and wheat as procurement prices are raised to benefit farmers. Linkages between high food prices and farmers' welfare is dubious because there...