Indian Railways has come to Food Corporation of India’s (FCI) rescue in flood-hit Punjab and Haryana, where part of its foodgrain stocks have been rotting due to heavy rains. The national transporter has given a discount of 35% to the public sector food procurer to carry grains from northern India to other parts of the country. The railways also expects to boost its own revenue by transporting a large volume of...

The foodgrains output for 2009-10 is expected to be 16.27 million tonnes lower at 218.20 million tonnes than the record production of 234.47 million tonnes last year. The decline, mainly in rice, edible oils and coarse cereals, is due to the widespread drought in the kharif season last year. Significantly, the government has slightly lowered the expected production of wheat in the fourth advance estimates to 80.71 million tonnes from 80.98 million...

Two associations representing over 17,000 ration shop dealers in Bengal moved the Supreme Court today, demanding better pay and working conditions for their members. The associations demanded a “pay commission” to fix minimum salaries, protection for the members against “mob fury” and electronic weighing machines and computers to stop allegations of diversion. The West Bengal M.R. Dealers Association and the All Bengal Fair Price Shop Dealers’ Welfare Association claimed they were “unable...

The Government of India’s initiative to focus on agricultural development in the eastern states, as represented by the meeting that the Union ministers for finance and agriculture attended in Kolkata last week, is welcome if belated. Some may see this as a pre-election gimmick with an eye to elections in Bihar and Bengal. But there is no gainsaying the fact that the region’s agricultural economy needs a productivity boost. Among...

India’s top grain-producers Punjab and Haryana will raise planting of basmati rice as floods have washed away the recently sown regular grades, farmers and trade officials said on Monday. Basmati rice can be planted late, but yields are much lower than regular grades, with farmers also having to face fluctuating market prices, unlike common rice grades that official agencies buy at fixed, attractive rates. “Paddy output will certainly drop this year. However,...