India's finance minister announced on Monday a food security bill for 2011/12, a measure that would provide cheap grains for millions of India's poor but which has sparked worries of a huge fiscal cost. It was one of the first signs of populism in the annual budget as Prime Minister Manmohan Singh confronted high prices and corruption scandals as well as elections in five states this year. In his ongoing budget speech,...

Is the chemical fertilizer-based food production system sustainable? As a result, what happens to the soil and the larger issue of food security? After a raging debate, the government finally decided to hike the chemical fertilizer subsidy, to catch up with spiralling fertilizer prices in the global market. Also, there is talk about bringing urea under the Nutrient Based Subsidy (NBS) system and decontrolling its prices. Obviously, the fertilizer industry...

Estimated expenditure on farm and irrigation sectors is Rs. 17,857 crore The agricultural sector has been given prime place in the State Budget presented to the Legislative Assembly on Thursday by Chief Minister B.S. Yeddyurappa, who also holds the Finance portfolio. Mr. Yeddyurappa's focus on agriculture is reminiscent of the Union Budget presented by the first Janata Party Government of Morarji Desai in the post-Emergency era. The estimated expenditure on agriculture and irrigation...

The 50-year-old farmer knew from experience that his onion crop was doomed when torrential rains pounded his fields throughout September, a month when the Indian monsoon normally peters out. For lack of modern agricultural systems in this part of rural India, his land does not have adequate drainage trenches, and he has no safe, dry place to store onions. The farmer, Arun Namder Talele, said he lost 70 percent of...

The chamber said concrete steps need to be taken to promote investment, given that recent data shows the investment growth rate slowed from 38.1% in 2007-08 to 36.5% in 2009-10 The Confederation of Indian Industry (CII) on Tuesday called for the government to provide tax incentives on agricultural activities in the forthcoming Budget to encourage private participation and adoption of new technologies in the sector. “CII has recommended encouraging private sector participation...