If dal roti went out of reach for the aam admi in 2009, vegetables and onion prices brought tears towards the end of 2010 and with food inflation touching a high of 14.44 per cent for the week ending December 18, the New Year did not ring in any respite from high food prices. The sudden increase of Rs.3 per litre in the price of petrol in December — the sixth...

This week’s good news on food price inflation was evened out by the bad news on fuel prices hike. But, both were along expected lines. Thanks to the so-called “base effect” — the fact that last year this time food prices were rising sharply and since last year’s prices become the denominator in this year’s price ratio, the rate of inflation would be expected to moderate — and to an...

Edible oil imports have surged to a record 9.24 million tonnes last year and were estimated to be nearly Rs 38,000 crore. They have emerged as the third most important import item, next only to petroleum products and gold. India is now the world’s largest importer of cooking fats, meeting more than half of its requirement through overseas supplies. Considering the country’s huge and fast-growing demand for cooking oils, such...

The government is considering several options to rationalise the subsidy on cooking gas such as excluding income tax payers from getting subsidised cylinders, limiting availability per household and higher prices for urban customers to provide this clean fuel in rural areas. “Those who can afford must pay the full price, while subsidised LPG should be made available to the poor,” an oil ministry official said adding that the ministry has...

With a gas-guzzler of an economy, India had been spending tens of billions of dollars annually to import petroleum. And so its 2009 policy on biofuels mandated that by 2017, India would have enough biofuel production to cover at least 20 percent of the country’s oil consumption. The government has in fact been encouraging the cultivation of jatropha curcas for the past seven years, believing that would be the fastest way...