Skip to main content

Low food inflation is bad news for farmers (downtoearth)

Three years after Narendra Modi-led NDA government came to power, India witnesses unprecedented level of low food inflation. States like Maharashtra and Madhya Pradesh have been witnessing farmers’ unrest for quite some time now. Six farmers were killed in police firing in a protest rally held in Mandsaur district of Madhya Pradesh to demand fair price of their produce and farm loan waiver.

On the one hand, middle-class celebrates one of the lowest food inflation rates, and on the other hand farmers get nothing in return of their toil and get killed for demanding fair price of their produce.

Food inflation rate in April was 0.31 per cent, which was lower than the inflation rate in January (0.53 per cent). Just one year back, the inflation was hovering around 8.35 per cent. (See table 1)

Analysis shows that low food inflation is directly proportional to fair price of produces in the market. As food inflation witnesses a sharp decline, so is the price of produces in agriculture market across the country.

India had witnessed food inflation rate of 8.35 per cent in July 2016. Since then there has been sharp decline in food inflation rate. Meanwhile, there has been sharp decline in commodity prices, too, which has been fueling farmers’ unrest across the country.

Table 1
India’s food inflation
Time period

Food inflation rate

July 2016

8.35

Oct 2016

3.32

Jan 2017

0.53

Apr 2017

0.31

Food inflation fell to 0.53 per cent in January 2017 as compared to 1.37 per cent in December 2016. It was the demonetisation era when 86 per cent of high-denomination currency was rendered invalid in a day. The demand-supply scenario turned against farmers as people didn’t have cash to buy their fast perishing farm produce.

Hence, prices of some vegetables plummeted by 60 per cent between July 2016 and April 2017, further aggravating agrarian crisis.

The average price of onion has dropped by 21 per cent, potato dropped by 60 per cent, tomato dropped by 55 per cent and garlic’s price dipped by 50 per cent since July 2016. (See tables below). Prices of pulses like pigeon peas dipped by more than 40 per cent in different markets across the country.

Onion (Rs/quintal)
Time period

Mini.

Max price

Av. price

Difference%

July, 2016

590

1,035

844



April, 2017

492

794

666

-21%



Potato (Rs/quintal)
Time period

Mini.

Max price

Av. price

Difference %

July, 2016

1,199

1,551

1,381



April, 2017

436

676

556

-60%



Tomato (Rs/quintal)
Time period

Mini.

Max price

Av. Price

Difference

July, 2016

1,279

2,138

1,878



April, 2017

644

1,017

844

-55%



Garlic (Rs/quintal)
Time period

Mini. price

Max price

Av. price

Difference

July, 2016

5,714

10,803

7,484



April, 2017

2,767

4,577

3,694

-50%

Comments

Popular posts from this blog

Cloud seeding

Demonstrating the function of the flare rack that carries silver iodide for cloud-seeding through an aircraft. 
Water is essential for life on the earth. Precipitation from the skies is the only source for it. India and the rest of Asia are dependent on the monsoons for rains. While the South West Monsoon is the main source for India as a whole, Tamil Nadu and coastal areas of South Andhra Pradesh get the benefit of the North East Monsoon, which is just a less dependable beat on the reversal of the South West Monsoon winds.

SC asks Centre to strike a balance on Rohingya issue (.hindu)

Supreme Court orally indicates that the government should not deport Rohingya “now” as the Centre prevails over it to not record any such views in its formal order, citing “international ramifications”.

The Supreme Court on Friday came close to ordering the government not to deport the Rohingya.

It finally settled on merely observing that a balance should be struck between humanitarian concern for the community and the country's national security and economic interests.

The court was hearing a bunch of petitions, one filed by persons within the Rohingya community, against a proposed move to deport over 40,000 Rohingya refugees. A three-judge Bench, led by Chief Justice of India Dipak Misra, began by orally indicating that the government should not deport Rohingya “now”, but the government prevailed on the court to not pass any formal order, citing “international ramifications”. With this, the status quo continues even though the court gave the community liberty to approach it in …

India’s criminal wastage: over 10 million works under MGNREGA incomplete or abandoned (hindu)

In the last three and half years, the rate of work completion under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has drastically declined, leading to wastage of public money and leaving villages more prone to drought. This could also be a reason for people moving out of the programme.

At a time when more than one-third of India’s districts are reeling under a drought-like situation due to deficit rainfall, here comes another bad news. The works started under the MGNREGA—close to 80 per cent related to water conservation, irrigation and land development—are increasingly not being completed or in practice, abandoned.

Going by the data (as on October 12) in the Ministry of Rural Development’s website, which tracks progress of MGNREGA through a comprehensive MIS, 10.4 million works have not been completed since April 2014. In the last three and half years, 39.7 million works were started under the programme. Going by the stipulation under the programme, close to 7…