The Punjab government’s policy to provide free power to the farm sector has led to alarming depletion of its groundwater besides unleashing a huge power subsidy burden of more than Rs 3,000 crore, the Planning Commission has said. The Commission has asked the SAD-BJP government in the state to do away with free power to the sector and begin charging “appropriate tariff” for it. In a letter to Punjab Chief...

The Indian Electricity Act, 2003, initially envisaged that the appropriate governments shall endeavour to supply electricity to all areas including villages and hamlets (Section 6), thus placing the responsibility for ensuring rural electricity supply on state governments. The UPA-I government amended this section to read as follows after detailed deliberations internally and with opposition parties: the concerned state government and the central government shall jointly endeavour to provide access to...

But they are smaller in comparison with those found in Punjab and Haryana Gujarat has acquired the distinction of having the largest number of agricultural godowns and storage sites in rural areas, the National Bank of Agriculture and Rural Development (NABARD) has said. The number of rural godowns in Gujarat touched 5,293 with a total storage capacity of 14.97 lakh metric tonnes. But they are smaller as compared to those...

A good monsoon forecast strengthens prospects for India to cut sugar imports, free up grain exports and buy more gold as rains boost supplies in the world’s leading consumer of most farm commodities. Annual monsoon rains from June to September are key to firing up growth and farm output and limiting inflation in India, which ranks among the world’s top producers and consumers of sugar, wheat, rice and edible oils and...

After sitting on the proposal for four years, the Planning Commission has approved the union agriculture ministry’s modified national agricultural insurance scheme. More than half a dozen different models of farm insurance have been tried out since the early 1970s but without much success. None of these schemes has been economically viable. We now have one more experiment being launched. No more than a fraction of the country’s over 120...