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Inflation: Three reasons why rising food prices could be here to stay -M Rajshekhar

-The Economic Times None of the standard explanations quite explain the rise in food prices India has seen: pronounced since 2006 and alarming after 2010. Drought and poor rains? The country has seen good aggregate rainfall in most of those years. Spike in global prices? Those were high in 2007-08, not now. Fragmented value chains that allow middlemen to grab large margins? The value chain has always been fragmented. Growth has slowed...

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Why we still need the APMC laws -Madan Sabnavis

-The Business Standard States need to create alternative marketing structures for farm produce since middlemen also provide vital services that are otherwise unavailable to the farmer   One of the issues often raised in the context of high food inflation is the pressing need to change the Agricultural Produce Market Committees (APMC), the marketing boards established by state governments. The earlier United Progressive Alliance government had asked the Congress-ruled states to remove fruit...

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A veggie vengeance -Shreekant Sambrani

-The Business Standard   The government needs counter cyclical policies to tackle vegflation, which has become a recurrent problem Somebody help. Narendra Modi and Arun Jaitley are held hostage, not by jihadists, recalcitrant opposition, international capital or the ever-erratic monsoon, but by faceless, nameless manipulators of Nasik, Navi Mumbai and Azadpur markets. The "raw" terror they have let loose resounds in the corridors of government as well as media power. Cutting to the chase,...

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Despite record onion yield, prices shoot up -Subodh Varma

-The Times of India   NEW DELHI: There has to be something drastically wrong somewhere when onion prices start rising just after the largest ever harvest of onions. In 2013-14, India harvested 19.3 million metric tons of onions. That's 15% more than the previous year. This is not the final figure: it is the latest estimates put out by the agriculture ministry and may go up or down by a couple of...

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Sowing Revolution -Milind Wani

-Himal South Asian   Agroecology as an alternative to India's failed agrarian system. Last September, inflation, as indicated by the wholesale price index, rose to a seven-month high of 6.46 percent. Food inflation was at 18.4 percent, and was led by skyrocketing onion prices, which increased by a whopping 323 percent. While the Union Minister for Agriculture, Sharad Pawar, ascribed the phenomenon to nothing more than a seasonal shortage, practices such as...

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