The countrywide share of corporate retail in food distribution tripled in the past four years when retail food prices showed the greatest increase. THE dramatic increase in food inflation over the past two years has been associated with several surprises. One major surprise has been how the top economic policymakers in the country have responded to it. The initial response was one of apparent disbelief, followed very quickly by the...

The heat generated by the high food inflation may force the government to go slow, or even drop, some of its key proposals to open up the country's food and fertiliser sectors, experts say. Decontrolling sugar and urea and freeing up some farm exports are some of the proposals the government may not touch in the coming days, they say. The proposal on foreign direct investment in multi-brand retail may also...

An innovative mechanism to save farmers from exploiting traders, which India implemented as a national model in the 70s, is now being blamed for rising vegetable prices.     Agricultural produce marketing committees (APMCs) have become archaic and vegetables and fruits need to be taken out of these local market hubs, analysts say. “They have turned into platform for hoarders, rather than a buyer-seller platform,” farm expert Sompal, who was formerly union agriculture...

What’s Going Wrong?     * Market intelligence remains a weak link; farm policies rarely reflect correct scenario     * Extensive damage to crop in Maharashtra not factored in promoting onion, tomato exports     * Middlemen make capital while farmers realise 10-15% margin, not enough to recoup losses     * Government market intervention capacity limited to foodgrains and pulses **** India’s worst-kept secret was finally revealed when the government threw up its hands in despair in the...

Availability of commodities to be augmented The Centre on Wednesday stepped up its efforts to rein in food inflation, which touched 18.32 per cent for the week ended December 25 last with onion price soaring to Rs. 60 a kg in retail. Prime Minister Manmohan Singh met Finance Minister Pranab Mukherjee, who later held a closed-door meeting with Agriculture Minister Sharad Pawar and Planning Commission Deputy Chairman Montek Singh Ahluwalia. Mr. Pawar...