In a move that brings relief to the rural workforce, but risks creating an inflation spiral, the government on Thursday revised the minimum wages paid for its flagship job guarantee scheme by linking them to the Consumer Price Index for agricultural labour (CPI-AL) for each individual state. Such a price spiral, in case it actually emerges, could roil the electoral prospects of the Congress in the key contests to the state...

Crop loss estimated at Rs 625 crore For Andhra Pradesh tobacco farmers, 2010 was a tough year. Heavy rain in the last week of November and the first week of December damaged the crop extensively, resulting in a loss of around Rs 625 crore. “According to our estimates, standing crop in 52,000 hectares out of the total 110,000 hectares has been either partially or fully damaged. This is the worst crop loss...

There is a suggestion circulating in the corridors of our apex monetary regulatory authority, the Reserve Bank of India, that food inflation is beginning to look more ‘structural’ than ‘seasonal’, and it can only be tackled by addressing the supply side. We need to address both demand and supply sides simultaneously to tackle food inflation. While we must be happy that more and more poor eat fruits and cook vegetables...

The Central government's newly proposed RTI rules make its intentions suspect. GOVERNMENTS which have only superficial commitment to the promotion of human rights often come under considerable pressure from within to impose stealthily restrictions on their exercise. They try to introduce such restrictions without much publicity, seek to execute them in a tearing hurry, and couch them in legal jargon. The Central government's proposal to notify the Right to Information...

High cotton prices spun out enough problems for India’s $62 billion textiles industry, but weaved gains for growers and traders in 2010. Amid pulls and pressures from the conflicting interests, a ministers’ group under the guidance of finance minister Pranab Mukherjee kept reviewing the price and crop situation, with excessive winter rains playing spoilsport. The textiles industry pulled out all stops to lobby with the textiles, commerce and finance ministries seeking a...