Newspaper Summary 170326

 

Wholesale inflation jumps to 2.13% in Feb, driven by costlier non-food items

Our Bureau New Delhi

With a rise in non-vegetable food prices, inflation based on the Wholesale Price Index (WPI) rose to 2.13 per cent in February, the Industry Ministry reported on Monday. This is the fourth successive month of rise. Wholesale inflation was 1.81 per cent in January.

“Positive rate of inflation in February is primarily due to an increase in prices of other manufacturing, manufacture of basic metals, non-food articles, food articles and textiles, etc.,” the Ministry said in a statement. According to WPI data, inflation in food articles was 2.19 per cent in February, compared to 1.55 per cent in the previous month.

VEGETABLES EASE

In vegetables, inflation eased to 4.73 per cent in February against 6.78 per cent in January. However, pulses, potato and egg, meat and fish saw an uptick in inflation in February over the previous month.

In the case of manufactured products, WPI inflation inched up to 2.92 per cent in February, from 2.86 per cent in the preceding month. Non-food articles category inflation spiked to 8.8 per cent in February, from 7.58 per cent in January. Negative inflation, or deflation, continued in the fuel and power basket, at 3.78 per cent in February, vis-a-vis 4.01 per cent in January. It may be noted that the RBI mainly tracks retail inflation for deciding on benchmark interest rates.

HIGHER ENERGY PRICES

According to Rajani Sinha, Chief Economist, CareEdge, the February inflation data do not yet reflect the potential impact of the ongoing conflict in West Asia, which has resulted in higher energy prices. Looking ahead, elevated energy prices are likely to exert upward pressure on WPI inflation as input costs rise.

The impact of elevated energy prices is expected to be more pronounced on WPI compared with CPI, given the higher weight of petroleum, natural gas and mineral oil in the WPI basket (10.4 per cent) relative to the CPI basket (4.8 per cent).

EL NINO RISK

In addition to energy price risks, the increased probability of an El Nino weather event in FY27 could adversely affect food inflation. Considering these risks, Sinha noted that it is vital to monitor geopolitical developments in West Asia and weather-related developments.

For FY26, WPI inflation is expected to average 0.6 per cent. Under a baseline scenario with Brent crude prices averaging between $60

Comfortable on crude, gas, petrol, diesel; still tight on LPG: Govt

Rishi Ranjan Kala New Delhi

The government on Monday said the country’s crude oil, petrol and diesel stocks remain “comfortable”, with uninterrupted natural gas supply even as the LPG situation remains “tight.” Sujata Sharma, Joint Secretary, Petroleum Ministry, said crude oil supplies remain “adequate” and refineries are operating at high capacity, with petrol pumps functioning normally and no dry-outs reported.

Natural gas supply is also uninterrupted, with 100 per cent availability of compressed natural gas (CNG) and piped natural gas (PNG). Commercial LPG users are being encouraged to shift to PNG where available, with city gas distribution (CGD) companies offering incentives and fast-tracking new connections, she said.

LPG SUPPLY TIGHT

“While the LPG situation remains tight, consumers continue to receive supplies with no distributor-level dry-outs reported. About 90 per cent of LPG bookings are now made online, and delivery authentication code usage has risen to 72 per cent,” Sharma said. The States have intensified action against hoarding and black marketing. Consumers with both PNG and LPG connections have been advised to surrender LPG connections and avoid panic booking.

India’s average daily LPG production since March 5 has increased by 36 per cent. From about 37,355 tonnes per day in January 2026, the output has risen to around 50,803 tonnes.

SHIPS IN TRANSIT

Rakesh Kumar Sinha, Special Secretary, Ministry of Ports, Shipping and Waterways, said 22 Indian-flagged vessels with 611 seafarers remain west of the Strait of Hormuz in the Persian Gulf region. These include six VLGCs, one LNG carrier, four very large crude carriers, one chemicals and products vessel, three container ships, two bulk carriers and one dredger. One vessel is in ballast (without cargo), while three are in dry dock for maintenance.

Indian-flag vessel Jag Laadki, carrying about 80,800 tonnes of Murban crude oil, sailed from the United Arab Emirates on March 14 and is safely en route to Mundra Port. Of the two Indian-flag LPG carriers that crossed the Strait of Hormuz on March 14 carrying about 92,712 tonnes of LPG, Shivalik has reached Mundra Port and completed documentation for priority discharge, while Nanda Devi is expected to arrive early on Tuesday.

IndiGo takes the lead in pilot count, SpiceJet tops pilot-to-aircraft ratio

Yashaswani Chauhan New Delhi

As airlines seek temporary relief from flight duty time limitation (FDTL) norms amid longer international flight durations, data on pilot strength, pilot-to-aircraft ratio and passenger service indicators point to widening operational pressures across the aviation sector. According to a response to an unstarred question in the Lok Sabha, among Indian carriers, IndiGo has the largest pilot base at 5,200, with a pilot-to-aircraft ratio of 7.6. Air India follows with 3,123 pilots and a ratio of 9.1. Air India Express employs 1,820 (ratio 8.8), while Akasa Air has 761 pilots with a ratio of 9.33. SpiceJet operates with 375 pilots, but has the highest pilot-to-aircraft ratio at 9.4. Alliance Air, with 115 pilots, has the lowest ratio at 6.

KEY INDICATOR

The pilot-to-aircraft ratio is a key indicator of scheduling flexibility. Higher ratios typically provide airlines greater buffer to manage disruptions, crew rest requirements and roster adjustments. Carriers operating with lower ratios may face tighter operational margins during unforeseen events such as diversions or airspace closures.

To supplement domestic capacity, some airlines have hired foreign pilots. Air India Express leads with 48 foreign pilots, followed by IndiGo with 29 and Alliance Air with 15. Cancellation data show diverging trends across carriers. IndiGo improved its cancellation rate from 0.78 per cent in 2024 to 0.48 per cent in 2025. Akasa Air also saw improvement, with cancellations declining from 0.31 per cent to 0.19 per cent. In contrast, the Air India group’s cancellation rate rose from 0.62 per cent in 2024 to 0.71 per cent in 2025. SpiceJet recorded the highest cancellation rates among major carriers, increasing from 1.91 per cent to 1.97 per cent.

BAGGAGE COMPLAINTS

Passenger service indicators show a sharp increase in baggage-related complaints in 2025. Damaged baggage cases rose from 224 in 2024 to 416 in 2025. Missing or stolen baggage incidents more than doubled from 185 to 433 during the same period. Data for delayed baggage were not maintained separately until 2025, when 76 cases were recorded. In 2026 (till February 28), 153 damaged baggage cases, 69 delayed baggage complaints and 173 missing or stolen baggage cases have already been reported.

The rise in baggage complaints, along with mixed trends in flight cancellations, highlights the growing operational strain on airlines as they expand and navigate external disruptions. As carriers add aircraft and seek temporary regulatory flexibility, ensuring adequate crew strength and consistent service standards will be critical to maintaining passenger trust.

After funding slowdown, edtech sector heads for consolidation

Jyoti Banthia Bengaluru

India’s edtech sector may be entering a fresh consolidation phase as large platforms seek scale and sustainable growth following the post-pandemic funding slowdown, according to industry executives and investors.

BROADER SHIFT

This trend is highlighted by upGrad, founded by Ronnie Screwvala, signing a term sheet to acquire rival Unacademy in a 100 per cent share-swap transaction. This move could become one of the largest consolidations in India's online education space in recent years.

According to data from PitchBook and Tracxn, Unacademy has raised approximately $854.3 million across 13 funding rounds—backed by investors like SoftBank, Tiger Global Management, and General Atlantic—while upGrad has raised $329 million across eight rounds. For upGrad, the acquisition would significantly expand its reach beyond higher education and professional upskilling into the K-12 and test-preparation segments, where Unacademy holds a massive audience.

“A lot of capital flowed into edtech during the Covid years, but in many cases the sector struggled to demonstrate durable learning outcomes,” noted Sunitha Viswanathan, partner at Kae Capital. Consequently, investors have become significantly more cautious in the post-Covid era.

PROFITABILITY PUSH

Investors suggest the deal reflects a sector-wide pivot toward profitability and scale after years of aggressive, venture-capital-fuelled expansion. Ujwal Sutaria, Founder and General Partner at TDV Partners, described upGrad’s move as a bid to build a “cradle-to-career” platform. By absorbing Unacademy's audience, upGrad creates a pipeline where learners can enter the ecosystem early and remain within it throughout their professional lives.

DIVERSIFIED PORTFOLIOS

The acquisition could also strengthen upGrad’s position ahead of a potential public listing in the coming years as platforms look to build stronger revenue streams and diversified portfolios. Sutaria noted a growing “last man standing” dynamic, where players with stronger balance sheets can acquire distressed assets at attractive valuations to gain scale faster than organic growth allows.

Despite these moves, caution remains. Viswanathan warned that investors became wary when “tech” began to take precedence over “education” and argued that future success requires keeping the learner at the center of technological interventions.

Funding in the sector has already plummeted from its 2021 peak, with venture capital firms now focusing on fewer, larger platforms with clear paths to profitability. If finalized, the upGrad–Unacademy deal could signal a broader wave of consolidation as the industry attempts to win back investor confidence through a combination of scale, technology, and improved outcomes.

Why a transition to natural farming is a necessity

PVS Suryakumar

Human civilisation rests on a simple foundation: the ability to grow healthy and nutritious food reliably. That foundation is now under growing strain. A disruption in energy or fertilizer markets can ripple through food systems faster than policy can respond. Modern agriculture is tightly linked to fossil fuels, global supply chains and ecological services — and when these links weaken, livelihoods and health suffer first.

FUEL TO FORK

The Fuel to Fork analysis by IPES-Food (2024/25) estimates that food systems consume nearly 40 per cent of petrochemicals and about 15 per cent of fossil fuels globally, tying every plate to volatile energy markets. The world is beginning to acknowledge this reality and must now find a way forward.

The system’s industrial dependence compounds the risk. Analyses by Vaclav Smil and FAO suggest that about 40 per cent of global dietary protein intake depends on synthetic nitrogen fertilizer made via the energy-intensive Haber-Bosch process. When energy tightens, fertilizer costs rise — and food prices follow. Current urea prices are already elevated (around $585/tonne), with analysts warning of $650-700/tonne under extended stress. Trade concentration amplifies this; according to Kpler’s trade data (2024), over two-thirds of India’s ammonia and sulphur imports originate in the Gulf region, meaning regional shocks quickly tighten global availability.

CLIMATE THREATS

The scientific picture is also plain. The IPCC warns that intensifying heat and shifting rainfall are already shortening growing windows. In India this is tangible: recent temperature spikes have lowered wheat yields in affected districts, and higher night-time temperatures reduce rice grain filling — material threats where wheat and rice anchor food security.

Given these multiple uncertainties, India’s cropping patterns will need gradual diversification. Pulses, oilseeds and millets offer nutritional and ecological advantages, though consumer acceptance, processing ecosystems and agronomic adaptation will determine how far and how fast such shifts occur.

ECOLOGICAL ALARM

Ecological and health signals deepen the alarm. Global assessments (IPCC-AR6, IPBES, FAO) show biodiversity loss, pollinator declines and soil degradation are eroding ecological services and destabilising yields. Public-health reviews (WHO) are increasingly concerned about chemical exposures and rising non-communicable diseases. These are not separate problems: degraded soils and chemical-laden foods undermine both production and public health.

A sensible policy is neither one of panic, nor prohibition. A disciplined and financed transition — phased across crops, regions and over time — can reduce dependency while protecting farmers’ welfare.

FOR A CREDIBLE TRANSITION

This has to be practical and subtle.

• First, improve nutrient-use efficiency and replace part of the input mix with biological alternatives where they are ready to deploy.
• Second, fund public agricultural research on soil health, microbial partnerships and cropping systems that integrate trees, livestock and legumes, and back it with extension.
• Third, redesign subsidies and procurement to reward soil health, improved soil carbon, biodiversity, and ecosystem services.
• Finally, build markets and supply chains that pay for the public goods produced by ecological agriculture, so farmers who make the transition are not left isolated and unpaid for their stewardship.

India’s embrace of natural farming can anchor this agenda and can be strategically phased temporally and spatially. Natural farming — with R&D, extension, assured markets and transition finance — can organically scale without forcing risky, abrupt change on farmers.

CONCLUSION

Gradually reducing chemical dependence in agriculture will make our food systems more resilient and healthier for both people and nature. We cannot easily control conflicts, wars or energy markets, but we can definitely redesign how we grow food. If institutional incentives, research and markets align behind resilient, ecological farming, we will reduce fragility where it matters most — at the soil and at the plate.

The writer is former Deputy Managing Director, NABARD. Views are personal.

Nervous Republicans

Sridhar Krishnaswami

War by any other name is still war. And no amount of spin from either US President Donald Trump or any of his top advisors seems to be working. Republican members of Congress in both the House of Representatives and Senate are getting jittery as to how the war in the Middle East, that started on February 28 with Israel and the US dropping missiles and bombs on Iran, is going to end.

So far there have been little indication from the administration apart from a raft of rants of how things are going to get worse for Tehran. And Iran has met all this with indignation and defiance.

According to a Quinnipiac University national poll taken a week after the start of operations, a majority of voters are opposed to the strikes with higher numbers against induction of ground troops into Iran and a significant 75 per cent believing that the American military action against Tehran will lead to a terrorist attack on the US. If 53 per cent of those polled oppose the military action, only 40 per cent support it; and this is along partisan lines with Republican support at 85 per cent and Democratic opposition close to 90 per cent.

VOTER SENTIMENT

But the significant message to the Grand Old Party is that 60 per cent of Independents are opposed to Washington’s military attack. As the polling analyst for the University, Tim Malloy, put it, “Voters are unenthusiastic about the air attack on Iran and there is overwhelming opposition to putting American troops on Iranian soil to fight a ground war”.

Iran has faced the brunt of the damage including casualties, including the outrageous hit on a girls school resulting in the death of an estimated 100, now being fobbed off on “old” intelligence. But Republican law makers are nervously watching how the administration responds to hunting down some 400-odd kg of Uranium stockpile said to be inside Iran.

Apart from fresh clamour for getting Congressional approval to put boots on the ground, law makers still have memories of Iraq and the hunt for Saddam Hussein’s weapons of mass destruction with inspectors coming back empty handed. In the case of the so-called Iranian stockpile, few will be nursing the illusion that the operation will be a quick entry-exit scenario.

OIL WORRIES

At this time, Republican anxiety does not lie in the potential return of body bags. It is in the implication of an expanding conflict in the Middle East that has already started taking its toll on oil prices.

The restrictions imposed for the Strait of Hormuz aside, Iran is said to have mined the waters, while also resorting to occasional hits on tankers braving the hostile environment. All this have led to a spurt in oil prices that is being reflected in the pumps in the US. Trump’s decision to suspend sanctions against Russian oil and the International Energy Association’s decision to release 400 million barrels as an emergency measure have hardly calmed markets where the price of crude still tops $100.

POLITICAL FALLOUT

Even as it is, record numbers of Republicans are leaving the House of Representatives and not seeking re-election in November. And Republicans incumbents in the House and Senate are facing strong challenges at the primaries that are in full swing, putting pressure on funds that would normally be spent fighting Democrats at showdown time.

The party leadership is facing the music not only at the national level, but at the state level too. The pressure has intensified for the party, especially in the red-states where the GOP has taken hits recently, to maintain their super-majorities for legislations to pass in the face of a veto by the Governors.

The political problem is rather acute for the GOP leadership that does not seem to be satisfied with the numbers of missiles and bombs that Iran faces daily or in the number of sorties flown by jet fighters.

The writer is a senior journalist who has reported from Washington DC on North America and UN.

Oil shock’s impact on India’s BoP

CP Chandrasekhar & Jayati Ghosh

Uncertainty and shortages have roiled India’s oil markets following the unwarranted bombings of Iranian civilian and military targets launched by the United States and Israel and Iran’s predictable response to that unprovoked attack. With India heavily reliant on oil imports and anywhere between 30 and 40 per cent of its crude imports and 80-90 per cent of its liquefied petroleum gas (LPG) imports sourced from and transiting through the Gulf region, the impact the war is having on the physical supply of oil and LPG and the prices of those supplies is a major shock to the economy.

GLOBAL OIL MARKETS

Globally, the war has shaken the world’s oil markets for multiple reasons:

• First, the bombing of Iran threatens to shut down its oil production facilities for quite some time, which influences calculations of long-run supply and impacts price trends.
• Second, Iran’s response includes shutting off the Strait of Hormuz, which services between a fifth and a third of world gas and oil demand, leading to an immediate impact on global supply.
• Third, large trading firms that dominate global physical trade in oil act as speculators for profit, leading to an amplified impact on oil prices far beyond what is warranted by supply shortfalls.
• Finally, the dominance of speculators means that efforts to redress imbalances, such as the release of 400 million barrels from strategic reserves by IEA members, often signal that the crisis is serious and intensify speculative activity, pushing prices way beyond the $100 barrier.

IMPACT ON INDIA

The impacts transmit to the Indian economy through multiple routes. Given India’s import dependence, there is already talk of shortages affecting households, truckers, and farmers. The rise in oil prices will trigger “imported” inflation due to both the rise in the dollar price of oil and the resulting depreciation of the rupee.

The current account of India’s balance of payments (BoP) will be hit by falling remittance inflows and a widening trade deficit. Since the end of the Covid pandemic, India’s aggregate imports have risen faster than its oil imports due to rising non-oil imports like gold. A sharp rise in the oil import bill will add to the vulnerability resulting from that longer-term tendency.

TRADE BALANCE IMPACT

In the past, India’s excess refinery capacity mitigated the impact by exporting refined products manufactured with imported crude. Given the value addition through refining, export revenues from these products were often larger than the value of the related oil imports.

However, given the current loss of physical access to crude imports, the Indian government may retain available supplies for domestic consumption, adversely affecting the export of refined products from private facilities. This would mean the influence of the widening import bill on the oil trade balance would be significantly higher, leading to a larger deterioration in the balance of payments.

CONCLUSION

Much of the post-pandemic deterioration in India's trade balance was previously due to the non-oil trade balance, with oil contributing only marginally. That is expected to change now. The fact that the oil crisis is resulting in both a physical shortage of supply and a spike in prices will amplify its adverse effects on India’s balance of payments.

Spring spectacle: Asia’s largest tulip garden opens in Srinagar with over 1.8 m blooms

Gulzar Bhat Srinagar

“Wande tzale, sheen gali, beyi yi bahaar” (winter will depart, the snow will melt and spring will arrive again), Chief Minister Omar Abdullah quoted the Kashmiri proverb signifying the arrival of better times after a challenging period. He was inaugurating Asia’s largest tulip garden on Monday.

The Indira Gandhi Memorial Tulip Garden is ablaze in a riot of colours, heralding the arrival of spring, featuring more than 1.8 million tulips of over 70 varieties nestled at the foot-hills.

A NEW BEGINNING

“We hope this spring season brings a new beginning for Jammu and Kashmir. They have gone through a difficult time, but just as seasons change, the circumstances change too,” Abdullah said.

The administration is focusing on developing tulip bulbs locally and exploring ways to extend the blooming season using hot houses to artificially control flowering and supply flowers to markets. He added that SKUAST and the Floriculture Department had taken responsibility for propagating tulip bulbs locally to reduce the foreign exchange spent on importing bulbs from the Netherlands.

PETAL PARADISE

“We spend significant foreign exchange on importing tulip bulbs from the Netherlands, and efforts are being made to propagate them here to cut those costs,” Abdullah said.

The garden, spread across about 74 acres, was set up in 2007 by former Chief Minister Ghulam Nabi Azad with the aim of promoting tourism. In 2014, the World Tulip Summit Society ranked it as...