The simultaneous occurrence of high food inflation and large foodgrain stocks in our granaries has been a matter of concern. The aim of this paper is to understand the fundamentals of our foodgrain market and policy that lead to this situation and to suggest policies for rectifying this.
This paper by Kaushik Basu, Chief Economic Adviser in the Ministry of Finance presents fundamentals of our foodgrain market and policy that leads to this situation and also suggests policies for rectifying this. Analyses some broad principles of economics that have been violated in the existing strategy and explains why we have not had adequate success in enriching farmers and protecting consumers.
