Even as concerns are emerging about generalised inflation gripping the economy, with reports of rising wage rates, food price inflation remains the citizen’s core concern. Macroeconomic authorities have been chasing a variety of targets – monetary, fiscal and supply-side constraints – to get a better grip on prices. It is often hoped that higher prices would translate into increased production since farmers would respond positively to price signals. What then...

DEALS WITH MULTINATIONALS AND OTHER BIG AGRIBUSINESS COMPANIES A wide range of farmers’ organisations, Gandhian organisations, people’s movements and NGOs have united to oppose a series of disturbing agreements which the Rajasthan Government reached with various multinational and other agribusiness companies including Monsanto. These agreements, which greatly increase the control and influence of these companies over the agriculture sector in India’s biggest State (in terms of area), have proved so controversial...

An inter-ministerial group set up by the government to keep a watch on inflation and suggest measures has reiterated the need to revise the mandi law that prevents competition among buyers for farm produce. The group headed by chief economic advisor Kaushik Basu said the Agricultural Produce Marketing Committee (APMC) Act needed to be revised to encourage competition among traders and promote efficiency in retailing. Kishore Biyani , Chairman, Future Group...

India's government has an ambitious plan for eradicating hunger in the country. Unfortunately, it may be going about it the wrong way. The National Food Security Bill that New Delhi intends to implement this year will make food a legal right for every citizen, including the millions of poor and underprivileged. No doubt the motive is right: India has one-fourth of the world's hungry poor, according to United Nations statistics. But merely...

Revising the Agriculture Produce Market Committee Act ( APMC Act), encouraging competition among traders and promoting efficiency in retailing are some of the steps needed to calm food inflation. These views were discussed in the second meeting of a interministerial group appointed by Prime Minister Manmohan Singh to review the inflation situation and suggest corrective measures, according to a statement issued by the finance ministry. Kishore Biyani, chairman of retail major...