Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Code Context


        trigger_error($message, E_USER_DEPRECATED);

    }
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 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php.'
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deprecationWarning - CORE/src/Core/functions.php, line 311
Cake\Http\ServerRequest::offsetGet() - CORE/src/Http/ServerRequest.php, line 2421
App\Controller\ArtileDetailController::index() - APP/Controller/ArtileDetailController.php, line 151
Cake\Controller\Controller::invokeAction() - CORE/src/Controller/Controller.php, line 610
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 120
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 94
Cake\Http\BaseApplication::__invoke() - CORE/src/Http/BaseApplication.php, line 235
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\RoutingMiddleware::__invoke() - CORE/src/Routing/Middleware/RoutingMiddleware.php, line 162
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 97
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Error\Middleware\ErrorHandlerMiddleware::__invoke() - CORE/src/Error/Middleware/ErrorHandlerMiddleware.php, line 96
Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Http\Runner::run() - CORE/src/Http/Runner.php, line 51
Cake\Http\Server::run() - CORE/src/Http/Server.php, line 98

Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Code Context
            if (Configure::read('debug')) {

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        LATEST NEWS UPDATES | A recipe to deepen the distress in rural economy -Himanshu    </title>
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Rural economy has to deal with declining incomes and rising cost of essentials

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                            <p style="text-align:justify">-Livemint.com</p><p style="text-align:justify"><em>Rural economy has to deal with declining incomes and rising cost of essentials</em></p><p style="text-align:justify">The general consensus on the state of the Indian economy can be summarized as follows: The economy has been in a deep crisis even before the pandemic-led disruptions. Second, the crisis is not a result of supply constraints but is a result of demand deficiency, particularly in the rural economy.</p><p style="text-align:justify">Recent evidence suggests that the impact of the slowdown and pandemic has been borne disproportionately by those at the bottom. And finally, monetary policy has limited success in dealing with a crisis of this nature with fiscal policy expected to play the dominant role. Any evaluation of the budget 2022 has to be in this context.</p><p style="text-align:justify">Given this context, the task before the finance minister was to increase consumption demand in the economy and also protect those affected by the slowdown and the pandemic. The surest way of doing this was to raise incomes of those engaged in agriculture, directly as well as indirectly. While the reality as reported by the situation assessment survey of the NSO is that farmers income from crop cultivation actually declined in real terms in 2019 compared with 2013, the situation seems to have worsened in the last one year with rising energy and fertiliser prices.</p><p style="text-align:justify">The ongoing elections to crucial state legislatures and farmers&rsquo; protest had forced the government to roll back the rise in fertiliser prices in May 2021 and absorb the rise in fertiliser prices by increasing subsidy. However, this budget has drastically reduced the subsidy on fertilisers from 1.4 trillion last year to 1.05 trillion for 2022-23. Incidentally, this is lower than the actual subsidy of 1.28 trillion in 2020-21 when global prices were much lower than current prices. The other major cost in agriculture is energy cost, which has also seen a sharp rise last year for both diesel and electricity.</p><p style="text-align:justify">The temporary freeze on electricity charges and diesel prices will likely be removed once elections to crucial states are over, leaving farmers to pay higher prices for energy as well. With both paid-out costs rising faster than output prices, which remain subdued due to low demand in domestic markets, there is every likelihood of farmer incomes declining even more than the levels of 2019. Despite rising inflation, the budget for other support schemes, such as crop insurance, interest subvention and cash transfer scheme, remained more or less unchanged. Clearly, this is a sure recipe for reducing real farm incomes at a time when the rural economy is already under severe distress.</p><p style="text-align:justify">Please <a href="https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html" title="https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html">click here</a> to read more.&nbsp;</p>                                                           
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Rural economy has to deal with declining incomes and rising cost of essentials

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    <h1 class="cat-box-title">A recipe to deepen the distress in rural economy -Himanshu</h1>
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                            <p style="text-align:justify">-Livemint.com</p><p style="text-align:justify"><em>Rural economy has to deal with declining incomes and rising cost of essentials</em></p><p style="text-align:justify">The general consensus on the state of the Indian economy can be summarized as follows: The economy has been in a deep crisis even before the pandemic-led disruptions. Second, the crisis is not a result of supply constraints but is a result of demand deficiency, particularly in the rural economy.</p><p style="text-align:justify">Recent evidence suggests that the impact of the slowdown and pandemic has been borne disproportionately by those at the bottom. And finally, monetary policy has limited success in dealing with a crisis of this nature with fiscal policy expected to play the dominant role. Any evaluation of the budget 2022 has to be in this context.</p><p style="text-align:justify">Given this context, the task before the finance minister was to increase consumption demand in the economy and also protect those affected by the slowdown and the pandemic. The surest way of doing this was to raise incomes of those engaged in agriculture, directly as well as indirectly. While the reality as reported by the situation assessment survey of the NSO is that farmers income from crop cultivation actually declined in real terms in 2019 compared with 2013, the situation seems to have worsened in the last one year with rising energy and fertiliser prices.</p><p style="text-align:justify">The ongoing elections to crucial state legislatures and farmers&rsquo; protest had forced the government to roll back the rise in fertiliser prices in May 2021 and absorb the rise in fertiliser prices by increasing subsidy. However, this budget has drastically reduced the subsidy on fertilisers from 1.4 trillion last year to 1.05 trillion for 2022-23. Incidentally, this is lower than the actual subsidy of 1.28 trillion in 2020-21 when global prices were much lower than current prices. The other major cost in agriculture is energy cost, which has also seen a sharp rise last year for both diesel and electricity.</p><p style="text-align:justify">The temporary freeze on electricity charges and diesel prices will likely be removed once elections to crucial states are over, leaving farmers to pay higher prices for energy as well. With both paid-out costs rising faster than output prices, which remain subdued due to low demand in domestic markets, there is every likelihood of farmer incomes declining even more than the levels of 2019. Despite rising inflation, the budget for other support schemes, such as crop insurance, interest subvention and cash transfer scheme, remained more or less unchanged. Clearly, this is a sure recipe for reducing real farm incomes at a time when the rural economy is already under severe distress.</p><p style="text-align:justify">Please <a href="https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html" title="https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html">click here</a> to read more.&nbsp;</p>                                                           
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Rural economy has to deal with declining incomes and rising cost of essentials

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                            <p style="text-align:justify">-Livemint.com</p><p style="text-align:justify"><em>Rural economy has to deal with declining incomes and rising cost of essentials</em></p><p style="text-align:justify">The general consensus on the state of the Indian economy can be summarized as follows: The economy has been in a deep crisis even before the pandemic-led disruptions. Second, the crisis is not a result of supply constraints but is a result of demand deficiency, particularly in the rural economy.</p><p style="text-align:justify">Recent evidence suggests that the impact of the slowdown and pandemic has been borne disproportionately by those at the bottom. And finally, monetary policy has limited success in dealing with a crisis of this nature with fiscal policy expected to play the dominant role. Any evaluation of the budget 2022 has to be in this context.</p><p style="text-align:justify">Given this context, the task before the finance minister was to increase consumption demand in the economy and also protect those affected by the slowdown and the pandemic. The surest way of doing this was to raise incomes of those engaged in agriculture, directly as well as indirectly. While the reality as reported by the situation assessment survey of the NSO is that farmers income from crop cultivation actually declined in real terms in 2019 compared with 2013, the situation seems to have worsened in the last one year with rising energy and fertiliser prices.</p><p style="text-align:justify">The ongoing elections to crucial state legislatures and farmers&rsquo; protest had forced the government to roll back the rise in fertiliser prices in May 2021 and absorb the rise in fertiliser prices by increasing subsidy. However, this budget has drastically reduced the subsidy on fertilisers from 1.4 trillion last year to 1.05 trillion for 2022-23. Incidentally, this is lower than the actual subsidy of 1.28 trillion in 2020-21 when global prices were much lower than current prices. The other major cost in agriculture is energy cost, which has also seen a sharp rise last year for both diesel and electricity.</p><p style="text-align:justify">The temporary freeze on electricity charges and diesel prices will likely be removed once elections to crucial states are over, leaving farmers to pay higher prices for energy as well. With both paid-out costs rising faster than output prices, which remain subdued due to low demand in domestic markets, there is every likelihood of farmer incomes declining even more than the levels of 2019. Despite rising inflation, the budget for other support schemes, such as crop insurance, interest subvention and cash transfer scheme, remained more or less unchanged. Clearly, this is a sure recipe for reducing real farm incomes at a time when the rural economy is already under severe distress.</p><p style="text-align:justify">Please <a href="https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html" title="https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html">click here</a> to read more.&nbsp;</p>                                                           
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    <br><a href="https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html" class="re" target="_blank">Livemint.com, 2 February, 2022, https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html</a><div class="clear"></div>
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A recipe to deepen the distress in rural economy -Himanshu

Published on Feb 2, 2022   Modified on Feb 3, 2022

-Livemint.com Rural economy has to deal with declining incomes and rising cost of essentials The general consensus on the state of the Indian economy can be summarized as follows: The economy has been in a deep crisis even before the pandemic-led disruptions. Second, the crisis is not a result of supply constraints but is a result of demand deficiency, particularly in the rural economy. Recent evidence suggests that the impact of the slowdown and pandemic has been borne disproportionately by those at the bottom. And finally, monetary policy has limited success in dealing with a crisis of this nature with fiscal policy expected to play the dominant role. Any evaluation of the budget 2022 has to be in this context. Given this context, the task before the finance minister was to increase consumption demand in the economy and also protect those affected by the slowdown and the pandemic. The surest way of doing this was to raise incomes of those engaged in agriculture, directly as well as indirectly. While the reality as reported by the situation assessment survey of the NSO is that farmers income from crop cultivation actually declined in real terms in 2019 compared with 2013, the situation seems to have worsened in the last one year with rising energy and fertiliser prices. The ongoing elections to crucial state legislatures and farmers’ protest had forced the government to roll back the rise in fertiliser prices in May 2021 and absorb the rise in fertiliser prices by increasing subsidy. However, this budget has drastically reduced the subsidy on fertilisers from 1.4 trillion last year to 1.05 trillion for 2022-23. Incidentally, this is lower than the actual subsidy of 1.28 trillion in 2020-21 when global prices were much lower than current prices. The other major cost in agriculture is energy cost, which has also seen a sharp rise last year for both diesel and electricity. The temporary freeze on electricity charges and diesel prices will likely be removed once elections to crucial states are over, leaving farmers to pay higher prices for energy as well. With both paid-out costs rising faster than output prices, which remain subdued due to low demand in domestic markets, there is every likelihood of farmer incomes declining even more than the levels of 2019. Despite rising inflation, the budget for other support schemes, such as crop insurance, interest subvention and cash transfer scheme, remained more or less unchanged. Clearly, this is a sure recipe for reducing real farm incomes at a time when the rural economy is already under severe distress. Please click here to read more.

Livemint.com, 2 February, 2022, https://www.livemint.com/opinion/online-views/a-recipe-to-deepen-the-distress-in-rural-economy-11643741618202.html

Tagged with: Rural Demand Union Budget 2022-23 Union Budget MGNREGA MGNREGS Rural Distress

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