Given the vulnerability of Indian agriculture to climate change, the countrys food security is threatened by global warming. The Union agriculture ministry is right, therefore, to warn of a possible foodgrain deficit, of as much as 20 million tonne by the end of this decade if measures are not taken to combat the impact of global warming on food production. It has also reportedly asked for an additional budgetary support...

Just reclassified Rs 1.46 lakh crore of spending as capital investment. Finance Minister Pranab Mukherjee’s Budget for 2011-12 seems to have used a new accounting system to make a virtue of necessity. Committed to provide funds to run the Mahatma Gandhi National Rural Employment Guarantee Scheme or MGNREGS, Mukherjee has transferred the entire financial allocation for the scheme under a head that will now help him take credit for a reduced effective...

The policy is to promote specific high-value segments within agriculture, where corporate houses have major profit interests. A COMMON compliment that Pranab Mukherjee's Union Budget for 2011-12 received from the media was its proclaimed “friendliness” to agriculture and rural areas. It was not just the media; members of India Inc. welcomed the Budget as “focussed” on agriculture. However, a close look at the Budget estimates reveals a different picture. Public...

Ban futures trading in essential commodities, says Modi report As chairman of the working group on consumer affairs, Gujarat Chief Minister Narendra Modi has recommended that futures trading in essential commodities be banned and that organised retail in agri-produce be encouraged to make a dent in food inflation. The working group, comprising the Chief Ministers of Gujarat, Tamil Nadu, Maharashtra and Andhra Pradesh, was set up in April last. Mr. Modi...

India's finance minister announced on Monday a food security bill for 2011/12, a measure that would provide cheap grains for millions of India's poor but which has sparked worries of a huge fiscal cost. It was one of the first signs of populism in the annual budget as Prime Minister Manmohan Singh confronted high prices and corruption scandals as well as elections in five states this year. In his ongoing budget speech,...