Latest news with #MinimumSupportPrices
Mint
24-07-2025
- Business
- Mint
Himanshu: Low inflation masks a growing problem of fruitless farming
The latest inflation estimates based on the consumer price index (CPI) and wholesale price index (WPI) have brought cheer to policymakers and financial markets. For June, retail inflation, as measured by the CPI, was recorded at 2.1% on a year-on-year basis. Rural inflation was even lower, at 1.72%, while it was 2.56% in urban areas. These are India's lowest readings since January 2019, when the economy was in a slowdown. Wholesale inflation, in fact, turned negative, with prices down 0.13% in June from a year earlier. While inflation at a six-year low is good news for the central bank and policymakers who have struggled to bring it down, the composition of our inflationary trends across commodities and their groups should be a worry for India's economy. At both the retail and wholesale levels, the decline in inflation was driven largely by food prices. In the retail case, food inflation has turned negative, with prices declining 1.1% from a year earlier (rural food inflation was at -0.9% and urban at -1.2%). A better picture emerges from WPI data, which shows food inflation at -3.8%. Unlike retail, wholesale inflation has seen a sharp decline since December 2024, when it was 8.5%. The reading has declined steadily since. Also read: Mint Quick Edit | Farming has regained policy attention Prices have moderated for almost all items within the food group at the retail level. But in the case of vegetables and pulses, they have declined sharply by 19% and 12%, respectively. Meat and fish items saw a decline of 1.6%. The wholesale price drops are sharper. While the decline in food prices both at the retail and wholesale levels may have driven headline inflation down, it has hurt price realization for farmers and thus the profitability of farming. So much so that for major pulses, farmers are forced to sell their produce at prices much below Minimum Support Prices (MSPs) set by the government for not just this year, but also the last. This is also true for some other crops such as of soybean, which has seen prices collapse. Part of the reason for price deflation is good monsoon rainfall, which has increased production. But this increase wasn't large enough to cause a collapse in prices on its own. It was exacerbated by the government's exuberance in importing pulses, most of them at prices lower than the MSP. India imported about 7.3 million tonnes of pulses last year and 4.7 million tonnes in 2023-24 as against average annual imports of 2.6 million tonnes between 2018 and 2023. India will continue to allow the duty-free import of several pulses until March 2026, despite the collapse in domestic prices. Similar is the case with several other commodities where ad-hoc trade decisions have driven down price realization for farmers. A reduction in duties on edible oils such as soybean, palm and sunflower oil has weighed on their local prices. An unfortunate consequence of the lower farm-gate prices has been lower sowing for most of pulses and soybean this season, regardless of abundant rainfall. Also read: Core inflation is back. What does it mean for India's monetary policy? Meanwhile, core inflation (which excludes food and fuel) continues to reign high in India. This points to a shift in the terms of trade against agriculture vis-à-vis other sectors. Recent data also suggests that agricultural input prices have continued to rise sharply. Also, a relevant negative consequence of the current global trade uncertainty has been a fall in fertilizer availability, which has pushed up black-market prices and dragged down usage. A shift in the terms of trade against agriculture has combined with a relentless rise in input costs, some of it on account of supply shocks, to erode the profitability of agriculture even further. With India's rural economy already facing stagnant real wages and a decline in farm incomes, mass distress is likely to intensify now. Ad-hoc trade policy shifts are not aberrative or one-off missteps, but a reflection of a larger political economy paradigm that prioritizes reducing retail inflation even if it results in farm incomes going down. It is part of a political economy architecture that favours the urban middle class against the country's large and vulnerable rural population. Given this context, any sacrifice by the government of the agricultural sector's interests to secure a favourable trade deal with the US for India's non-farm sectors would only reinforce our distorted political economy under which agriculture gets short shrift. Also read: Rural India's reality check: Consumers turn cautious as aspiration meets inflation True, low inflation makes space for interest rate cuts, but these will not trigger industrial investment so long as consumer demand stays weak. A policy paradigm that ignores this reality goes against the principle of equity. It also hurt incomes and the larger economy.
Hans India
12-07-2025
- Politics
- Hans India
CPI flays govt for sidelining people's issues
Alur (Kurnool district): Addressinga massive public gathering on Friday during the 12th State conference of the Communist Party of India (CPI) in Alur constituency, CPI State Secretary K Ramakrishna strongly criticised the ruling dispensation for sidelining people's basic needs in pursuit of political gains. He lamented that several key irrigation projects in the region, such as Vedavathi, Nagaradam reservoir and Gundrevula remain incomplete, causing severe drinking and irrigation water shortages. Despite these pressing issues, the administration continues to focus on power politics, he said. Highlighting the deteriorating infrastructure, Ramakrishna pointed out the pathetic condition of roads in Madugula that get damaged even after a minor rainfall. He demanded lasting solutions to such civic problems. He also criticised the much-hyped 'Super Six' welfare schemes, calling them mere publicity stunts with major lapses in execution. Referring to the neglect of essential initiatives like the Jinkala Park wildlife project, he stated that the government's priorities were misplaced. He condemned the infighting within the TDP and the ruling party's failure to address people's issues, warning that the BJP-led government's support for corporate giants like Ambani and Adani poses a serious threat to democracy. Speaking at the same event, CPI-affiliated Ryuthu Sangham (Farmers' Association) State president Ramachandraiah and district secretary Giddaiah expressed concern over the deteriorating condition of farmers. They stated that the commercialisation of agriculture has pushed the farming community into a dark future. Due to lack of fair prices for their produce, mounting debts and insufficient access to fertilisers, seeds and irrigation, many farmers are forced into committing suicide, they said. They also pointed out the government's failure to ensure proper implementation of Minimum Support Prices (MSPs), which further adds to the financial stress on farmers. The leaders emphasised that farmers were being pushed into a debt trap as input costs continue to rise while yields remain low and market prices plummet. Instead of supporting farmers, they alleged, the government was backing corporate interests, which is deeply distressing. Criticising the BJP government for allegedly trying to privatise the agricultural sector for the benefit of Ambani and Adani, they called it a dangerous ploy against the rural economy. The leaders urged farmer unions to engage in intellectual resistance and continue their movements in support of farmers' rights.
Hans India
10-07-2025
- Politics
- Hans India
Thousands protest labour codes in a massive rally
Vijayawada: Vijayawada witnessed a massive protest rally on Wednesday, with thousands of workers, employees, trade union leaders, and farmers marching from Canal Road to Lenin Centre. The rally was organised in response to a nationwide strike call by trade unions and farmers' associations, demanding the repeal of the controversial Labour Codes introduced by the Central government. Holding banners, trade union flags, and flexes, protesters raised slogans condemning the policies undermining workers' rights. Prominent leaders, including AITUC state president Ravulapalli Ravindranath, deputy general secretary S Venkatasubbaiah, CITU state president A V Nageswara Rao, and farmer leader Vadde Shobhanadreeswara Rao, participated alongside IFTU state president P Prasad, AIUTUC state Secretary K Sudhir Babu and CPI Vijayawada assistant secretary Nakka Veerabhadra Rao. Workers from both organised and unorganised sectors joined the rally, with AITUC city general secretary Mule Sambasiva Rao and CITU vice-president Durgarao presiding over the public meeting at Lenin Centre. Addressing the gathering, Ravulapalli Ravindranath accused the Narendra Modi-led NDA government of prioritising corporate interests over workers' rights. He criticised the replacement of 44 vital labour laws with four Labour Codes, which he claimed erode protections for workers. Ravindranath highlighted that nearly 50 crore workers, employees, teachers, rural poor, and farmers protested nationwide, declaring the strike a resounding success. Leaders from the All India Bank Employees Association (AIBEA), IFTU, and other unions condemned the Labour Codes for repealing 29 protective laws, extending workdays from 8 to 10 hours, and mandating night shifts for women. They demanded the immediate repeal of the codes, a minimum wage of Rs 26,000, the formation of the 8th Pay Commission nationally and the 12th PRC at the state level, and an end to outsourcing, contractual work, and privatisation. They also called for filling vacant government posts and establishing welfare boards for workers in construction, beedi, auto, porter, and transport sectors. Farmer leader Vadde Shobhanadreeswara Rao denounced the government's anti-farmer and anti-worker policies, urging a united front to oppose them. He demanded the implementation of the Swaminathan Commission's recommendations, a legal guarantee for Minimum Support Prices (MSP), identity cards and loans for tenant farmers, and the repeal of the Electricity Amendment Act, while opposing smart meter installations. The rally saw strong participation from CITU, IFTU, YSR Trade Union, and AIUTUC members, with leaders like Jasti Kishore and Ramakrishna addressing the crowd, reinforcing the call for policy reversal.
New Indian Express
01-06-2025
- Politics
- New Indian Express
Central team evaluates execution of schemes in Andhra Pradesh
VISAKHAPATNAM: A seven-member delegation from the Ministry of Panchayat Raj, Government of India, visited various villages in Alluri Sitarama Raju (ASR) district on Saturday to assess the implementation of government schemes and the functioning of Grama Sabhas. The team, led by Joint Secretary Mukta Sekhar, visited Paderu and Araku Valley mandals. During their field inspection, the officials evaluated the delivery of public services, village-level planning through Grama Sabhas, and the availability of basic infrastructure. At Minumuluru village in Paderu mandal, the team met local coffee and pepper farmers to understand their economic conditions, challenges in cultivation, and concerns related to Minimum Support Prices (MSP). On the occasion, Mukta Shekhar emphasised the role of village resolutions (Grama Sanhas) in formulating effective development plans tailored to local needs. The team also visited a camp organised by the Women and Child Welfare Department in the village, where they observed traditional community programmes such as Seemantham and Annaprasana. They reviewed the process of pension distribution and enquired about the practice of cash disbursement. ASR Joint Collector Dr MJ Abhishek Gowda explained that due to limited banking facilities in the region and the remote location of many beneficiaries, pensions are being provided in cash to ensure accessibility. He added that the process is monitored through the IVRS system to maintain transparency and prevent irregularities. The team also visited Sunkarametta village in Araku mandal, where they held interactions with residents and gathered feedback on local governance.
New Indian Express
01-06-2025
- Politics
- New Indian Express
BRS sought BJP merger before Kavitha's arrest: Minister Bandi
KARIMNAGAR: Union Minister of State for Home Affairs Bandi Sanjay Kumar claimed that the BRS had explored a merger with the BJP even before the arrest of BRS MLC K Kavitha in the Delhi liquor scam. But the BJP refused to entertain the proposal, he added. Addressing a gathering at the Karimnagar Municipal Corporation on Saturday, Sanjay accused the Congress of stoking controversies around Kavitha and BRS chief K Chandrasekhar Rao (KCR) to deflect attention from its failure to implement the promised six guarantees. He criticised Congress leaders as ineffective and accused the party of failing to fulfill its commitments. Later, he inaugurated development projects worth Rs 2.63 crore under the National Rural Employment Guarantee Scheme in Gangadhara mandal and laid the foundation stone for a Rs 2.33 crore high-level bridge in Venkatraopalle, Rajanna Sircilla district. Sanjay praised Prime Minister Narendra Modi for raising the Minimum Support Prices (MSP) but noted that farmers still aren't receiving fair prices. He blamed both the KCR-led and Congress-led governments for betraying the farming community. He also condemned Chief Minister A Revanth Reddy's remarks as "seditious," alleging they undermined the confidence of the Army. He said the Congress lacks faith in the armed forces and questioned why Pakistan-occupied Kashmir wasn't reclaimed during Indira Gandhi's tenure if her leadership was truly strong.
