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Resource centre on India's rural distress
 
 

Why food inflation may turn sticky -Sayantan Bera

-Livemint.com

* Despite the slowdown in rural demand, the spike in food prices is not showing any signs of cooling. Here’s why

* This is the best time for the budget to address the volatility in food prices. Reliable market intelligence on crop production and timely advisories to farmers can help stabilize prices

New Delhi:
For more than five years now, the Indian countryside has only heard stories of anguish. Consecutive years of drought in 2014 and 2015 gave way to record harvests in the years that followed, leading to an unprecedented crash in farm gate prices—from pulses to potatoes, farmers repeatedly harvested losses.

Ripe tomatoes were left to wither away in fields; marginal farmers sold pulses at rates lower than support prices announced by the government; onions and potatoes were dumped by the roadside; dairy farmers emptied out cans of milk on highways, complaining that milk was selling cheaper than bottled water. Why, hapless farmers drove tractors over their ready-to-harvest crop fields; five died in police firing in the summer of 2017 as protests turned violent in Madhya Pradesh.

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