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...
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Danger of inflation by CP Chandrasekhar
WELL before Budget 2010-11 was presented, inflation had emerged as the principal economic problem in the country. With food-price inflation running at close to 20 per cent, even the United Progressive Alliance (UPA) government at the Centre had been forced to recognise it as a problem that deserved as much attention as the objective of achieving a 9 or 10 per cent rate of growth, if not more. In fact,...
More »Universal PDS only way to beat hunger, tackle price spiral? by Subodh Varma
Galloping food prices have shattered family budgets across the country, with latest inflation data showing that prices rose at nearly 18% in the week ending February 6. Many essentials of Indian kitchens are almost beyond reach; sugar is up by nearly 60%, pulses by 46% and potatoes by 53% over a year. In a country already suffering from chronic malnutrition and low incomes, this trend is a killer. President Pratibha...
More »Food prices and PDS
The United Progressive Alliance (UPA) government loves committees. Have problem, will deliberate, seems to be the government’s motto. So, it is not surprising that the chief ministers’ conference on price rise ended with yet another committee being appointed, this time on the overhaul of the public distribution system (PDS). This despite the fact that the recent surge in prices had nothing to do with the absence of a universal PDS...
More »The blame game around food prices by CP Chandrasekhar
The special meeting of Chief Ministers convened by the Centre indicates that food price inflation remains worrisome. But at the meet the problem was underplayed and little of substance emerged. With food price inflation still running at close to 18 per cent, the UPA government at the Centre has been forced to recognise that it constitutes a problem that deserves as much or more attention than the objective of achieving...
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