Centre slashes food subsidy by Rs.4,524 crore a year
New Delhi: The government has reduced grain rations under the public distribution system and also raised grain prices for all but the poorest households. The cut is likely to reduce the Centre's food subsidy bill by Rs4,524 crore a year.

Differences within the Cabinet forced the government to drop a proposed increase in the issue price of grain for families below the poverty line, even though it raised the issue price for rice by 85 paise a kg and for wheat by 95 paise a kg for the rest.
The central issue prices of grain were last revised in July 2001.

The Cabinet also decided to cut the monthly grain entitlement for families below the poverty line by 5 kg to 30 kg a month. Beneficiary families above the line will now be entitled to a monthly ration of 20 kg instead of 35 kg.

The Centre had budgeted for a food subsidy bill of Rs26,200 crore in 2005-06. Though the impact of today's changes will be felt only during the last quarter, it could result in a saving of over Rs1,000 crore this fiscal year.

With families below the poverty line and those covered by the Antyodaya Anna Yojana also getting food benefits under rural employment programmes, the government feels the lower rations are adequate to meet the nutritional requirements of poor households.
Back to News Review index page  

Inflation falls on cheaper fruits, vegetables
New Delhi: The annual wholesale price index-based inflation rose 4.40 per cent during the week ended December 24, against previous week's annual rise of 4.62 per cent. The lower growth was mainly due to a fall in prices of fruits and vegetables and manufactured products, according to data released here on Friday by the ministry of commerce and industry.

Inflation was at 6.56 per cent during the corresponding week last year. During the latest reported week, the Wholesale Price Index fell by 0.2 per cent to 196.8 points. WPI stood at 188.5 points a year ago.
Back to News Review index page  

Chinese reforms to enable Indian law firms to set up office
New Delhi: China is initiating legal reforms to facilitate Indian legal firms to set up shop in China and to help Indian companies establish their manufacturing base without any legal hindrance, said Jin Shan, vice-president, All China Lawyers Association (ACLA).

Jin said that ACLA and BAI had already reached an understanding to work out modalities to enable Indian and Chinese legal firms to set up offices in each other's country.

He said that China was ushering major legal reforms in the areas of intellectual property rights, trade marks, investment protection, customs and excise to ensure that international capital shifts towards China without any legal hassles. China wished to enhance its two-way trade with India to US$50bn, which necessitates a sound legal system to be put in place.

As of today, the two-way trade between India and China is restricted at the level of US$14bn, which is projected to grow to US$20bn by 2008.
Back to News Review index page  

SC expresses worry over lost patent cases
New Delhi: The Supreme Court expressed serious concern over India losing ground on patent related cases abroad on traditional products like Basmati, Neem and Turmeric. The Court has directed the Centre to examine the reasons behind unsuccessful overseas legal battles.

The SC wants to know from the Centre, whether the patent cases were lost due to the inaction by authorities dealing with the patent related issue and what are the corrective steps taken in this regard.

The court asked the Centre to submit the report within four weeks with a direction to Additional Solicitor General Gopal Subramanian to examine the report of Indian Law Institute, which analysed the reasons for India's debacle at the international forum on the patent and Intellectual Property Right (IPR) issues.
Back to News Review index page