Reforms in the supply-chain system can help India tackle the demand-supply mismatch in essential food items Food inflation may have dropped to single digit but since that fall is set against last year’s elevated double-digit base, it continues to hurt the poor — 65 per cent of their disposable income goes towards food. The government often defends its failure to tame inflation by arguing that it has no magic wand to...

Jairam Ramesh's removal as Environment Minister creates uncertainties for domestic environment policy and the deadlocked global climate talks. WHATEVER one may think of its overall impact, the recent Cabinet reshuffle was not exactly a damp squib. Its single most important component was Jairam Ramesh's replacement as the Minister of State with independent charge in the Ministry of Environment and Forests (MoEF) by Jayanthi Natarajan, a relative political lightweight with very little...

The government’s latest estimates show that foodgrain production in the crop year 2010-11 rose sharply by 10.75% to a record 241.56 million tonnes (mt), a move that could potentially have a dampening effect on inflationary expectations. The impressive increase led by wheat, maize and pulses is revealed in the final estimates for 2010-11, and is partially explained by the fact that 2009-10 was a drought year. The crop year extends from July...

-The Business Standard   For a country whose cuisine uses so much edible oil, India’s dependence on imported cooking oil is as economically debilitating as its dependence on imported energy. Barring a short spell in the late eighties, when the country was nearly self-sufficient in edible oil production, the bulk of the cooking oil needs have been met through imports for decades. Even today, domestic oilseed production does not meet even...

A perverse, yet novel reason put forward to explain high inflation is that the poor are eating more as they are becoming less poor. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been extolled for being responsible for higher consumption, which in a way is a vindication of high inflation. The extended logic used here is that if the poor are eating more and we are paying high...