India drops food subsidy cuts
THE Indian government has dropped a plan to reduce food subsidies which would have resulted in a massive series of price rises.
The cuts on basic staples were made just four days ago in an effort to trim the countrys fiscal deficit.
Price rises of up to 30% for wheat, rice and sugar have been cancelled.
But increases of between 44% and 64% for wheat, sugar and rice under a public distribution scheme to those “above the poverty line” will remain in place.
- Financial Times 03/02/99 page 4