Pawan Goenka noticed something unusual last year—tractor sales were climbing even though India had its worst monsoon in more than three decades and farm output dropped 2.8% in the three months to December last fiscal. The umbilical cord that tied rainfall patterns and tractor sales seemed to have been ruptured. The president of auto and tractor maker Mahindra and Mahindra Ltd offers an interesting explanation to this puzzle: growing labour shortages...

The case of the Food Security Bill gets curiouser and curiouser.  What started off as a fight between universalization and targeting has ended (or so it would seem) in a complete victory in the National Advisory Council, Government of India (NAC) for targeting through universalization (if such a thing was possible), with the honourable exception of Prof Jean Dreze, who has to be commended for his ‘note of disagreement’. On...

While the Sonia Gandhi-led National Advisory Council's proposal on enhanced food security hinges on higher procurement and increased reliance on the public distribution system, there is a strong view in the government that overworking a creaking system is a bad idea. In a paper circulated within the government, chief economic adviser to the finance ministry Kaushik Basu has argued that what is needed for food security to work is a reduced...

While the National Advisory Council (NAC), Planning Commission and the Prime Minister Office are grappling over the proposed National Food Security Bill, the government has been steadily increasing allocation under the Targetted Public Distribution System (TPDS) during last many years. According to Siraj Hussain, chairman and managing director, Food Corporation of India (FCI), with the rise in procurement of wheat and rice by the corporation during last few years, more and...

Raises support price by Rs 380/qtl; marginal rise for wheat. Pulses saw the highest rise of Rs 340- 380 per quintal in minimum support price (MSP), the government announcing these for the current rabi season. The decision is in line with government efforts to increase their sowing, to meet the increasing demand for the crop. The MSPs of masur and chana were increased by Rs 380 per qtl and Rs 340 per...