29 January 1999
India cuts food subsidies

INDIA has announced a cut in subsidies on basic foods provided under a ration system for the poor, as part of plans to cut the governments fiscal debt.

Prices of wheat, rice and sugar sold under the Public Distribution System were raised by up to 30% with immediate effect.

The government also raised bulk prices of urea by 11% under the changes which are expected to save the government up to Rs50 billion (£660m).

  • Financial Times 29/01/99 page 4