At a time the country is facing high food inflation, its bread basket is sitting on colossal wheat stocks. The stocks, to the tune of 12 million tonnes, lying in godowns and open spaces in Punjab are giving sleepless nights to the Food Corporation of India (FCI). About 800,000 tonnes wheat moves out of Punjab in a month. Based on these figures, the state can clear about five million tonnes wheat...

Is the Planning Commission too singularly focused on reducing food subsidy and intending to dissuade people from buying subsidized food rations even as the government spends thousands of crores to store excess grains in its stocks? Is it being penny wise but pound foolish? An internal note of the Plan panel suggests so. A note prepared by the panel reveals some startling information. On April 1, 2010 -- normally the...

The government may shift to per capita allocation of foodgrains and raise the price of wheat and rice meant for the Above the Poverty Line (APL) population under the Public Distribution System (PDS) to meet the objectives of the proposed National Food Security Bill. Raising the price of APL foodgrains is an “unavoidable adjustment,” the Planning Commission has said in a note it has prepared for the Sonia Gandhi-headed National...

While it may appear paradoxical that at a time when the government is fighting inflationary pressures, it has chosen to hike the minimum support price (MSP) for foodgrains, the reality is that prevailing market prices for almost all foodgrains, oilseeds and cereals are way above even these newly announced prices. Therefore, despite the substantial hike in MSP for kharif crops, especially for pulses, the impact on both market and farmers’...

Never mind the Kirit Parikh committee's proposal for a 20% reduction in pan-India allocation of subsidised kerosene to stem oil companies' under-recoveries, the UPA government might do just the opposite. It is mulling not only the retention of the commodity—used by a vast segment of rural India for lighting—in the targeted public distribution system (TPDS) but also introduction of another item: edible oil. Even as she is about to take over...