As India expects another year of bumper crops on the back of a normal monsoon, it is likely to add to the misery of the farmers while consumers may be happy to get their food items at cheaper prices.
As India expects another year of bumper crops on the back of a normal monsoon, it is likely to add to the misery of the farmers while consumers may be happy to get their food items at cheaper prices.
India produced a record quantity of rice, wheat, pulses, oilseeds and coarse cereals in 2016-17 crop year (July-June). The net result is – while farmers in several states are agitating over lower realisation from their crops, the government has claimed credit for maintaining food inflation at very low level.
The wholesale price-based inflation eased to 0.9 per cent in June – the lowest in at least eight months – as prices of food and manufactured items declined, prompting industry to demand a rate cut by the RBI. The prices of food articles contracted by 3.47 per cent in June on a yearly basis.
Vegetable inflation stood at (-) 21.16 per cent, potato saw a maximum deflation of 47.32 per cent, followed by pulses at 25.47 per cent. For onion, deflation was 9.47 per cent in June. The rate of price increase was 1.93 per cent in cereals while that of protein-rich items like egg, meat and fish was 1.92 per cent in June. “If the trend continues this year and production exceeds from last year, farmers will be in trouble as agriculture commodities prices are likely to be under pressure,” said an official.
