Major foodgrains producing states have been the worst hit by rising prices, thanks to the Centre’s decision to pay more to farmers for their produce. Although inflation, as measured by the consumer price index (CPI), has been in double digits for nearly six months, there are several states where CPI in the rural region has been around 20%. A look at state-wise consumer price index numbers shows that pre-dominantly agri-based...

The Unique Identification Authority of India (UIDAI)’s ambitious plan of issuing a unique biometric-enabled number, innocuously called ‘aadhaar’, to every Indian resident has finally begun to generate a debate on citizen-State relations, privacy, financial implications, and operational practicalities. What the debate has largely missed so far, however, is the credibility of the UIDAI’s claims in the field of social policy, particularly the National Rural Employment Guarantee Act (NREGA) and Public Distribution...

A parliamentary standing committee has recently asked the government to introduce the national food security Bill in the winter session of the Lok Sabha. A promise to implement a Bill of this kind was first mooted in President Pratibha Patil's inaugural speech last year when she mentioned the government's intention to provide each family below the poverty line (BPL) with 25 kg of foodgrains a month at Rs 3 per...

In a bid to protect food grains from spoiling due to inadequate storage facilities, Punjab and Sind Bank has come up with an initiative to extend credit for the construction of rural godowns in Punjab. The Punjab government is fully supporting this initiative and they have also got the green signal from the government of India. 'The bank will provide finance for construction of rural godowns of any storage capacity as per...

The government will soon have to decide on the proposal of direct cash payments in lieu of food subsidy as a key committee of Parliament has asked the ministries concerned to decide quickly on the issue. This cash payment through smart cards is increasingly being seen as an option to prevent leakage in the public distribution system (PDS), and certain variants of the system are already being experimented with by...