With the government revising wages under MGNREGA, it could be another pressure point for rising inflation, if appropriate policy action to address the demand-supply gap is not in place, said the Reserve Bank of India (RBI) on Monday. "MGNREGA has the potential to raise the wage bargaining power even in the unorganised sector, particularly in the agriculture and construction sectors, besides raising rural demand at a faster pace relative to the...

Export curbs during 2008 crisis ‘exacerbated' situation. The Food and Agriculture Organisation on Wednesday said short-term policy actions, especially curbs on exports, could have harmful effects in the longer term and even aggravate the situation. In statement put on its website, the organisation, a body of the United Nations, pointed out at the 2007-08 crisis in the global food market as an example of how such decision can exacerbate the situation...

The United Nations Food and Agriculture Organization (FAO) is calling on countries to carefully examine the implications of high food prices and not to take any policy actions that might appear useful in the short term but could have harmful, longer-term effects or even aggravate the situation. The call comes with the agency’s publication today of an updated guide for policy-makers in developing countries, aimed at helping them address the negative...

The present situation is different from that of 2007-2008, although recent climatic events may significantly reduce agricultural production next season. Must history always repeat itself? We are indeed on the verge of what could turn out to be another major food crisis. The FAO Food Price Index at the end of 2010 returned to its highest level. Drought in Russia and the export restrictions adopted by the government, together with...

Fundamentally, our current crisis in food supplies as well as food prices arises out of the sidelining of Jawahar Lal Nehru’s dictum “everything else can wait but not agriculture”. Unfortunately, the last twenty years have been characterised by very low rates of agricultural growth, averaging around one percent per annum. This is almost equal to the rate of GDP growth during the last half century of British rule. In effect, in...