Sharp differences persist in the government over whether and how much of an impact the impending food law is likely to have on open market food prices. At a time when input costs for farmers have already gone up significantly and threaten volatility in food prices, the food ministry has dismissed apprehensions voiced by Commission for Agricultural Costs and Prices ( CACP) chairman Ashok Gulati on the issue. Last week,...

DESPITE WHAT our reel-life heroes have shown us, perhaps it’s only possible to fight one villain at a time. Still, in his last few days on the job, Karnataka Lokayukta Santosh Hegde tried to battle two evils, with two reports that presented damning evidence of corruption in the BJP government. The first report, on illegal mining, had enough firepower to systematically dig holes in the state government. The second report,...

India’s domestic wheat prices higher than international rates by around $100 per tonne; traders seek subsidy India’s food ministry will oppose a proposal to export wheat as it prefers to distribute the excess to the poor within the country, K.V. Thomas, Union minister of state (independent charge) for consumer affairs, food and public distribution, said on Thursday. “We want the wheat produced by our farmers to be distributed here first,” Thomas said,...

The embarrassment of riches in grain stocks confronting the government is a problem of its own making. It is the product of ill-conceived policies on grain procurement, storage and distribution and mistimed decisions on opening and shutting of foodgrain exports. The grain stocks that have piled up as a consequence are far more than needed for any rational inventory and public distribution programme. Burgeoning food stocks pose problems of storage...

The Centre's food subsidy bill, incurred mainly on account of reimbursemnet of economic costs to theFood Corporation of India for grain procurement, holding and transportation, has shot up by a whopping Rs 34,738 crore compared to the budgetary allocation for 2011-12. This is mainly due to government buys of a record foodgrain crop in the 2010-11 agricultural year (july-june).The original subsidy for the year was estimated at Rs 47,239.8 crore....