FEW rural pleasures match seeing a golden field of grain, rustling and ripe for reaping. But the harvest season in the northern hemisphere is being marked by turmoil on global wheat markets. A big reason is to be found in one of the world’s largest wheat exporters, Russia. Hit by fires and drought which have wiped out a third of the grain crop, the authorities there have banned exports, first temporarily...

When noted economist Jean Dreze visited Surguja in Chhattisgarh a decade ago, its utterly non-functional Public Distribution System (PDS) looked like especially “designed to fail.” The National Advisory Committee member has written in a recent article that the ration shop owners illegally sold the grain meant for the poor and “hunger haunted the land.” But that was then. The economist was pleasantly shocked to see the transformation this time. “Ten years...

Even as the prime minister protests his inability to distribute food free of cost to the poor, the overflowing food stocks seem set to lead to another year of blockbuster expenditure on the public distribution system. According to numbers from the department of food and public distribution system (PDS), the government spent Rs25,600 crore on food subsidies during just the first four months of the year. The amount — higher than the...

Kaushik Basu proposes a new framework for release of foodgrains from government warehouses. Last year, official food inflation peaked at 21.05 per cent for the week ended November 28. Since then, it has eased — though the year-on-year rise of 10.86 per cent for August 21 is still in double-digit territory. Moreover, in absolute terms, the ‘food articles' index for the latest recorded week, at 303.3, is higher than the 296.1 level...

Decision comes in the wake of court's concern In the wake of the concern expressed by the Supreme Court at foodgrains rotting, the Union government on Thursday decided to release an additional 2.5 million tonnes of rice and wheat to the States for distribution to the poor under the Targeted Public Distribution System. The grain will be sold at Below the Poverty Line (BPL) rates in the next six months. It was also...