-PTI   The government plans to provide an additional 5 million tonnes of wheat and rice to above poverty line (APL) families at subsidised rates through ration shops, food minister KV Thomas said on Wednesday. The additional allocation, which would be over-and-above the normal quota under the Public Distribution System (PDS), would provide relief to the common man and also help the government in clearing godowns for storage of new crops. The government...

In the season of draft Bills, the Sonia Gandhi-led National Advisory Council has come out with its draft of the National Food Security Act, 2011, that gives legal backing to the highly leaky PDS system, thereby excluding innovative options like cash transfers, which may have included variants like food stamps and UID-linked smart cards. Despite the PM’s panel objecting to universal legal entitlement, the draft says that “not less than 90%...

Indian farmers have much to celebrate this year with a bumper wheat harvest. As predicted by the ministry of agriculture, wheat farmers have begun to harvest what is shaping up to be a record crop, projected at 84.27 million tonnes. We are growing more wheat than ever before. The earlier record of 80.8 million tonnes of wheat production was achieved in 2009-10. Estimates show that foodgrain production including wheat, rice, pulses...

The current perception that cash transfers can replace public provision of basic goods and services and become a catch-all solution for poverty reduction is false. Where cash transfers have helped to reduce poverty, they have added to public provision, not replaced it. For crucial items like food, direct provision protects poor consumers from rising prices and is part of a broader strategy to ensure domestic supply. Problems like targeting errors...

-The Economic Times   As the government twiddles its thumbs on allowing export of surplus grains , wheat prices have plunged below not just the government's promised minimum support price but also the price of maize. This has prompted poultry feed manufacturers to substitute wheat for maize in their produce. So chicken will eat wheat this year. As prices stay depressed, farmers will switch from wheat to some other crop or just simply...