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,...

While it may appear paradoxical that at a time when the government is fighting inflationary pressures, it has chosen to hike the minimum support price (MSP) for foodgrains, the reality is that prevailing market prices for almost all foodgrains, oilseeds and cereals are way above even these newly announced prices. Therefore, despite the substantial hike in MSP for kharif crops, especially for pulses, the impact on both market and farmers’...

The Planning Commission has offered an objective assessment of the unsatisfactory situation as far as Indian agriculture is concerned in its mid-term appraisal of the 11th Five-Year Plan. The commission has done well to remind us that the farm sector is still subject to strangulating controls that dissuade private investment in key areas, including logistics and storage. The government’s agricultural pricing policies, which have rendered minimum support prices (MSPs) the...

Food inflation remains extraordinarily high at 17.79%. The government emphasises supply problems caused by last year’s drought, But a bigger and less reversible problem is government-led inflation through big increases in the Minimum Support Prices (MSP). The MSP for wheat and paddy rose only modestly between 2002-03 and 2005-06 , from Rs 620 to Rs 650/ quintal and from Rs 530 to Rs 570/quintal respecticely. But after that the MSP shot...

Spiralling prices of pulses have shown India’s dependence on imports. Pulses are integral to India’s diet but not its food policy. As a result, supply cannot meet demand. What are the consequences and solutions? Surendra Nath has switched to eating grass-pea, though he knows it is not good for health. But so is tobacco, he argues. He cannot do without pulses and pigeon-pea selling at Rs 100 a kg is beyond...