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: 73
 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::printArticle() - APP/Controller/ArtileDetailController.php, line 73
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
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Cake\Http\Runner::__invoke() - CORE/src/Http/Runner.php, line 65
Cake\Routing\Middleware\AssetMiddleware::__invoke() - CORE/src/Routing/Middleware/AssetMiddleware.php, line 88
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

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: 74
 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::printArticle() - APP/Controller/ArtileDetailController.php, line 74
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 88
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]
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		&#039;title&#039; =&gt; &#039;Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;
&lt;br /&gt;
An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (&lt;em&gt;kharif&lt;/em&gt;)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;
&lt;br /&gt;
Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of &lt;em&gt;ragi&lt;/em&gt;&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
---&lt;br /&gt;
&lt;br /&gt;
It could be observed from chart-1 that the average &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;
&lt;br /&gt;
Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;
&lt;br /&gt;
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;
&lt;br /&gt;
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;
&lt;br /&gt;
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;
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	&#039;metaDesc&#039; =&gt; &#039;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;&lt;br /&gt;An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot; title=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (kharif)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;&lt;br /&gt;Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of ragi&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;---&lt;br /&gt;&lt;br /&gt;It could be observed from chart-1 that the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;&lt;br /&gt;Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;&lt;br /&gt;The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;&lt;br /&gt;Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;&lt;br /&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;&lt;br /&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot; title=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
	&#039;site_title&#039; =&gt; &#039;im4change&#039;,
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]
$article_current = object(App\Model\Entity\Article) {

	&#039;id&#039; =&gt; (int) 38129,
	&#039;title&#039; =&gt; &#039;Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;
&lt;br /&gt;
An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (&lt;em&gt;kharif&lt;/em&gt;)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;
&lt;br /&gt;
Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of &lt;em&gt;ragi&lt;/em&gt;&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
---&lt;br /&gt;
&lt;br /&gt;
It could be observed from chart-1 that the average &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;
&lt;br /&gt;
Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;
&lt;br /&gt;
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;
&lt;br /&gt;
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;
&lt;br /&gt;
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;
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$metaTitle = &#039;NEWS ALERTS | Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;
$metaKeywords = &#039;minimum support price,Minimum Support Prices,Remunerative Prices&#039;
$metaDesc = &#039;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....&#039;
$disp = &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;&lt;br /&gt;An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot; title=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (kharif)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;&lt;br /&gt;Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of ragi&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;---&lt;br /&gt;&lt;br /&gt;It could be observed from chart-1 that the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;&lt;br /&gt;Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;&lt;br /&gt;The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;&lt;br /&gt;Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;&lt;br /&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;&lt;br /&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot; title=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;&#039;
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                <strong>Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate</strong></h1>
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                <div style="text-align:justify">It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.<br /><br />An analysis of 14 <em><a href="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi" title="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi">kharif</a> </em>crops, namely paddy, <em>jowar </em>(sorghum), <em>bajra </em>(pearl millet), <em>ragi </em>(finger millet), maize, <em>arhar/ tur</em> (pigeon pea), <em>moong</em>, <em>urad</em> (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP">MSP (kharif)</a> surpassed the average annual growth rate of Wholesale Price Index (<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only">WPI</a>) during the period from 2016-17 to 2018-19.<br /><br />Chart-1 shows that for all the 14 <em>kharif </em>crops the above-mentioned statement holds true. For example, in the case of <em>ragi</em>, the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">annual growth rate in MSP</a> <em>(kharif)</em> between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">inflation in WPI of ragi</a> was 10.57 percent during the 3-years span.</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Chart 1 Average annual growth rate in WPI &amp; MSP of selected kharif crops between 2016-17 and 2018-19" src="https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg" style="height:757px; width:1235px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">average annual growth rate</a> in MSP&#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.</em><br /><br /><em>Similarly, the above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">average annual rate of inflation</a> in WPI&#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.</em></div><div style="text-align:justify"><em>&nbsp;</em></div><p style="text-align:justify"><em><strong>Source: </strong>Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp; </em></p><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br /><em>MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access</em>&nbsp;<br /><br /><em>MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</em><br />---<br /><br />It could be observed from chart-1 that the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">annual growth rate in WPI</a> of maize <em>(-0.23 percent)</em>, arhar <em>(-15.12 percent)</em>, moong <em>(-10.61 percent)</em>, urad <em>(-12.92 percent)</em>, groundnut <em>(-3.09 percent)</em>, soyabean <em>(-0.03 percent)</em>, sunflower seed <em>(-1.63 percent)</em> and Niger seed <em>(-12.81 percent)</em> was negative between 2016-17 and 2018-19.<br /><br />Since official procurement is a small fraction of the production of each of the 13 <em>kharif</em> crops <em>(paddy excluded)</em>, the raising of MSP in the last 3 financial years had little impact on the inflation rate <em>(WPI-based)</em> of these crops.<br /><br />The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their <em>kharif</em> crops to <em>mandis</em> viz. market centres for bulk sale. Since there is <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">no official information</a> about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI <em>(Base 2011-12=100)</em> in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">various economists</a>.<br /><br /><strong>Inflation in retail prices</strong><br /><br />Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &#39;miscellaneous&#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general <em>(all groups)</em> in the rural areas.<br /><br /><strong>Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas</strong></div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Table 1 CPI inflation rate" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg" style="height:184px; width:774px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.<br /><br /><strong>Source: </strong>Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</em><br /><br />It may be noted that the &lsquo;miscellaneous&rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.<br /><br />Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &lsquo;miscellaneous&rsquo; group such as health and education vis-&agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&nbsp;&nbsp; &nbsp;<br /><br /><strong>References</strong><br /><br />Wholesale Price Index (WPI) Data <em>(2011-12=100)</em>, Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp;<br /><br />Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</div><div style="text-align:justify"><br />CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">click here</a> to access&nbsp;</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><br /><strong>Image Courtesy: Himanshu Joshi</strong></div>               </font>
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		&#039;title&#039; =&gt; &#039;Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;
&lt;br /&gt;
An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (&lt;em&gt;kharif&lt;/em&gt;)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;
&lt;br /&gt;
Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of &lt;em&gt;ragi&lt;/em&gt;&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
---&lt;br /&gt;
&lt;br /&gt;
It could be observed from chart-1 that the average &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;
&lt;br /&gt;
Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;
&lt;br /&gt;
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;
&lt;br /&gt;
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;
&lt;br /&gt;
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;
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	&#039;metaTitle&#039; =&gt; &#039;NEWS ALERTS | Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;minimum support price,Minimum Support Prices,Remunerative Prices&#039;,
	&#039;metaDesc&#039; =&gt; &#039;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;&lt;br /&gt;An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot; title=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (kharif)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;&lt;br /&gt;Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of ragi&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;---&lt;br /&gt;&lt;br /&gt;It could be observed from chart-1 that the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;&lt;br /&gt;Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;&lt;br /&gt;The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;&lt;br /&gt;Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;&lt;br /&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;&lt;br /&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot; title=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;&#039;,
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	&#039;title&#039; =&gt; &#039;Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;
&lt;br /&gt;
An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (&lt;em&gt;kharif&lt;/em&gt;)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;
&lt;br /&gt;
Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of &lt;em&gt;ragi&lt;/em&gt;&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
---&lt;br /&gt;
&lt;br /&gt;
It could be observed from chart-1 that the average &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;
&lt;br /&gt;
Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;
&lt;br /&gt;
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;
&lt;br /&gt;
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;
&lt;br /&gt;
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;
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$articleid = (int) 38129
$metaTitle = &#039;NEWS ALERTS | Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;
$metaKeywords = &#039;minimum support price,Minimum Support Prices,Remunerative Prices&#039;
$metaDesc = &#039;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....&#039;
$disp = &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;&lt;br /&gt;An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot; title=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (kharif)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;&lt;br /&gt;Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of ragi&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;---&lt;br /&gt;&lt;br /&gt;It could be observed from chart-1 that the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;&lt;br /&gt;Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;&lt;br /&gt;The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;&lt;br /&gt;Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;&lt;br /&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;&lt;br /&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot; title=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;&#039;
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                <strong>Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate</strong></h1>
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                <div style="text-align:justify">It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.<br /><br />An analysis of 14 <em><a href="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi" title="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi">kharif</a> </em>crops, namely paddy, <em>jowar </em>(sorghum), <em>bajra </em>(pearl millet), <em>ragi </em>(finger millet), maize, <em>arhar/ tur</em> (pigeon pea), <em>moong</em>, <em>urad</em> (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP">MSP (kharif)</a> surpassed the average annual growth rate of Wholesale Price Index (<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only">WPI</a>) during the period from 2016-17 to 2018-19.<br /><br />Chart-1 shows that for all the 14 <em>kharif </em>crops the above-mentioned statement holds true. For example, in the case of <em>ragi</em>, the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">annual growth rate in MSP</a> <em>(kharif)</em> between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">inflation in WPI of ragi</a> was 10.57 percent during the 3-years span.</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Chart 1 Average annual growth rate in WPI &amp; MSP of selected kharif crops between 2016-17 and 2018-19" src="https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg" style="height:757px; width:1235px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">average annual growth rate</a> in MSP&#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.</em><br /><br /><em>Similarly, the above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">average annual rate of inflation</a> in WPI&#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.</em></div><div style="text-align:justify"><em>&nbsp;</em></div><p style="text-align:justify"><em><strong>Source: </strong>Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp; </em></p><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br /><em>MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access</em>&nbsp;<br /><br /><em>MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</em><br />---<br /><br />It could be observed from chart-1 that the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">annual growth rate in WPI</a> of maize <em>(-0.23 percent)</em>, arhar <em>(-15.12 percent)</em>, moong <em>(-10.61 percent)</em>, urad <em>(-12.92 percent)</em>, groundnut <em>(-3.09 percent)</em>, soyabean <em>(-0.03 percent)</em>, sunflower seed <em>(-1.63 percent)</em> and Niger seed <em>(-12.81 percent)</em> was negative between 2016-17 and 2018-19.<br /><br />Since official procurement is a small fraction of the production of each of the 13 <em>kharif</em> crops <em>(paddy excluded)</em>, the raising of MSP in the last 3 financial years had little impact on the inflation rate <em>(WPI-based)</em> of these crops.<br /><br />The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their <em>kharif</em> crops to <em>mandis</em> viz. market centres for bulk sale. Since there is <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">no official information</a> about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI <em>(Base 2011-12=100)</em> in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">various economists</a>.<br /><br /><strong>Inflation in retail prices</strong><br /><br />Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &#39;miscellaneous&#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general <em>(all groups)</em> in the rural areas.<br /><br /><strong>Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas</strong></div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Table 1 CPI inflation rate" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg" style="height:184px; width:774px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.<br /><br /><strong>Source: </strong>Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</em><br /><br />It may be noted that the &lsquo;miscellaneous&rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.<br /><br />Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &lsquo;miscellaneous&rsquo; group such as health and education vis-&agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&nbsp;&nbsp; &nbsp;<br /><br /><strong>References</strong><br /><br />Wholesale Price Index (WPI) Data <em>(2011-12=100)</em>, Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp;<br /><br />Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</div><div style="text-align:justify"><br />CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">click here</a> to access&nbsp;</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><br /><strong>Image Courtesy: Himanshu Joshi</strong></div>               </font>
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    <link rel="canonical" href="https://im4change.in/<pre class="cake-error"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f49b36e3ba5-trace').style.display = (document.getElementById('cakeErr67f49b36e3ba5-trace').style.display == 'none' ? '' : 'none');"><b>Notice</b> (8)</a>: Undefined variable: urlPrefix [<b>APP/Template/Layout/printlayout.ctp</b>, line <b>8</b>]<div id="cakeErr67f49b36e3ba5-trace" class="cake-stack-trace" style="display: none;"><a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f49b36e3ba5-code').style.display = (document.getElementById('cakeErr67f49b36e3ba5-code').style.display == 'none' ? '' : 'none')">Code</a> <a href="javascript:void(0);" onclick="document.getElementById('cakeErr67f49b36e3ba5-context').style.display = (document.getElementById('cakeErr67f49b36e3ba5-context').style.display == 'none' ? '' : 'none')">Context</a><pre id="cakeErr67f49b36e3ba5-code" class="cake-code-dump" style="display: none;"><code><span style="color: #000000"><span style="color: #0000BB"></span><span style="color: #007700">&lt;</span><span style="color: #0000BB">head</span><span style="color: #007700">&gt;
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		&#039;title&#039; =&gt; &#039;Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
		&#039;subheading&#039; =&gt; &#039;&#039;,
		&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;
&lt;br /&gt;
An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (&lt;em&gt;kharif&lt;/em&gt;)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;
&lt;br /&gt;
Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of &lt;em&gt;ragi&lt;/em&gt;&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
---&lt;br /&gt;
&lt;br /&gt;
It could be observed from chart-1 that the average &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;
&lt;br /&gt;
Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;
&lt;br /&gt;
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;
&lt;br /&gt;
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;
&lt;br /&gt;
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;
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	&#039;articleid&#039; =&gt; (int) 38129,
	&#039;metaTitle&#039; =&gt; &#039;NEWS ALERTS | Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
	&#039;metaKeywords&#039; =&gt; &#039;minimum support price,Minimum Support Prices,Remunerative Prices&#039;,
	&#039;metaDesc&#039; =&gt; &#039;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....&#039;,
	&#039;disp&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;&lt;br /&gt;An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot; title=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (kharif)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;&lt;br /&gt;Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of ragi&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;---&lt;br /&gt;&lt;br /&gt;It could be observed from chart-1 that the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;&lt;br /&gt;Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;&lt;br /&gt;The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;&lt;br /&gt;Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;&lt;br /&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;&lt;br /&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot; title=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;&#039;,
	&#039;lang&#039; =&gt; &#039;English&#039;,
	&#039;SITE_URL&#039; =&gt; &#039;https://im4change.in/&#039;,
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	&#039;id&#039; =&gt; (int) 38129,
	&#039;title&#039; =&gt; &#039;Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;,
	&#039;subheading&#039; =&gt; &#039;&#039;,
	&#039;description&#039; =&gt; &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;
&lt;br /&gt;
An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (&lt;em&gt;kharif&lt;/em&gt;)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;
&lt;br /&gt;
Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of &lt;em&gt;ragi&lt;/em&gt;&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
---&lt;br /&gt;
&lt;br /&gt;
It could be observed from chart-1 that the average &lt;a href=&quot;tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;
&lt;br /&gt;
Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;
&lt;br /&gt;
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;

&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;
&lt;br /&gt;
It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;
&lt;br /&gt;
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;
&lt;br /&gt;
Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;
&lt;br /&gt;
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;
&lt;br /&gt;
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;

&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;
&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;
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$articleid = (int) 38129
$metaTitle = &#039;NEWS ALERTS | Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate&#039;
$metaKeywords = &#039;minimum support price,Minimum Support Prices,Remunerative Prices&#039;
$metaDesc = &#039;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....&#039;
$disp = &#039;&lt;div style=&quot;text-align:justify&quot;&gt;It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.&lt;br /&gt;&lt;br /&gt;An analysis of 14 &lt;em&gt;&lt;a href=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot; title=&quot;http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi&quot;&gt;kharif&lt;/a&gt; &lt;/em&gt;crops, namely paddy, &lt;em&gt;jowar &lt;/em&gt;(sorghum), &lt;em&gt;bajra &lt;/em&gt;(pearl millet), &lt;em&gt;ragi &lt;/em&gt;(finger millet), maize, &lt;em&gt;arhar/ tur&lt;/em&gt; (pigeon pea), &lt;em&gt;moong&lt;/em&gt;, &lt;em&gt;urad&lt;/em&gt; (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;MSP&quot;&gt;MSP (kharif)&lt;/a&gt; surpassed the average annual growth rate of Wholesale Price Index (&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;WPI only&quot;&gt;WPI&lt;/a&gt;) during the period from 2016-17 to 2018-19.&lt;br /&gt;&lt;br /&gt;Chart-1 shows that for all the 14 &lt;em&gt;kharif &lt;/em&gt;crops the above-mentioned statement holds true. For example, in the case of &lt;em&gt;ragi&lt;/em&gt;, the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;annual growth rate in MSP&lt;/a&gt; &lt;em&gt;(kharif)&lt;/em&gt; between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;inflation in WPI of ragi&lt;/a&gt; was 10.57 percent during the 3-years span.&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Chart 1 Average annual growth rate in WPI &amp;amp; MSP of selected kharif crops between 2016-17 and 2018-19&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg&quot; style=&quot;height:757px; width:1235px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg&quot;&gt;average annual growth rate&lt;/a&gt; in MSP&amp;#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;Similarly, the above-mentioned calculated figures related to &amp;#39;&lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;average annual rate of inflation&lt;/a&gt; in WPI&amp;#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.&lt;/em&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&amp;nbsp;&lt;/em&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Source: &lt;/strong&gt;Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp; &lt;/em&gt;&lt;/p&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;em&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;---&lt;br /&gt;&lt;br /&gt;It could be observed from chart-1 that the average &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg&quot;&gt;annual growth rate in WPI&lt;/a&gt; of maize &lt;em&gt;(-0.23 percent)&lt;/em&gt;, arhar &lt;em&gt;(-15.12 percent)&lt;/em&gt;, moong &lt;em&gt;(-10.61 percent)&lt;/em&gt;, urad &lt;em&gt;(-12.92 percent)&lt;/em&gt;, groundnut &lt;em&gt;(-3.09 percent)&lt;/em&gt;, soyabean &lt;em&gt;(-0.03 percent)&lt;/em&gt;, sunflower seed &lt;em&gt;(-1.63 percent)&lt;/em&gt; and Niger seed &lt;em&gt;(-12.81 percent)&lt;/em&gt; was negative between 2016-17 and 2018-19.&lt;br /&gt;&lt;br /&gt;Since official procurement is a small fraction of the production of each of the 13 &lt;em&gt;kharif&lt;/em&gt; crops &lt;em&gt;(paddy excluded)&lt;/em&gt;, the raising of MSP in the last 3 financial years had little impact on the inflation rate &lt;em&gt;(WPI-based)&lt;/em&gt; of these crops.&lt;br /&gt;&lt;br /&gt;The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their &lt;em&gt;kharif&lt;/em&gt; crops to &lt;em&gt;mandis&lt;/em&gt; viz. market centres for bulk sale. Since there is &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;no official information&lt;/a&gt; about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI &lt;em&gt;(Base 2011-12=100)&lt;/em&gt; in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;various economists&lt;/a&gt;.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Inflation in retail prices&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &amp;#39;miscellaneous&amp;#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general &lt;em&gt;(all groups)&lt;/em&gt; in the rural areas.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas&lt;/strong&gt;&lt;/div&gt;&lt;p style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/p&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;img alt=&quot;Table 1 CPI inflation rate&quot; src=&quot;https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg&quot; style=&quot;height:184px; width:774px&quot; /&gt;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;em&gt;&lt;strong&gt;Note: &lt;/strong&gt;The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;Source: &lt;/strong&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;It may be noted that the &amp;lsquo;miscellaneous&amp;rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.&lt;br /&gt;&lt;br /&gt;Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &amp;lsquo;miscellaneous&amp;rsquo; group such as health and education vis-&amp;agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&amp;nbsp;&amp;nbsp; &amp;nbsp;&lt;br /&gt;&lt;br /&gt;&lt;strong&gt;References&lt;/strong&gt;&lt;br /&gt;&lt;br /&gt;Wholesale Price Index (WPI) Data &lt;em&gt;(2011-12=100)&lt;/em&gt;, Office of the Economic Adviser, Ministry of Commerce &amp;amp; Industry, please &lt;a href=&quot;http://eaindustry.nic.in/home.asp&quot; title=&quot;http://eaindustry.nic.in/home.asp&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;br /&gt;&lt;br /&gt;Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf&quot; title=&quot;CPI MosPI&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;MSP for kharif crops 2018-19, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf&quot;&gt;click here&lt;/a&gt; to access&lt;br /&gt;&lt;br /&gt;MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please &lt;a href=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot; title=&quot;https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf&quot; title=&quot;MSP between 2013-14 to 2017-18 NABARD&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;CACP Report on Price Policy for Kharif crops of 2018-19 season, please &lt;a href=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot; title=&quot;http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;amp;DocId=1&amp;amp;PageId=39&amp;amp;KeyId=615&quot;&gt;click here&lt;/a&gt; to access&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please &lt;a href=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot; title=&quot;https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html&quot;&gt;click here&lt;/a&gt; to access&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&amp;nbsp;&lt;/div&gt;&lt;div style=&quot;text-align:justify&quot;&gt;&lt;br /&gt;&lt;strong&gt;Image Courtesy: Himanshu Joshi&lt;/strong&gt;&lt;/div&gt;&#039;
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            <h1 class="news_headlines" style="font-style:normal">
                <strong>Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate</strong></h1>
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                <div style="text-align:justify">It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.<br /><br />An analysis of 14 <em><a href="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi" title="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi">kharif</a> </em>crops, namely paddy, <em>jowar </em>(sorghum), <em>bajra </em>(pearl millet), <em>ragi </em>(finger millet), maize, <em>arhar/ tur</em> (pigeon pea), <em>moong</em>, <em>urad</em> (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP">MSP (kharif)</a> surpassed the average annual growth rate of Wholesale Price Index (<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only">WPI</a>) during the period from 2016-17 to 2018-19.<br /><br />Chart-1 shows that for all the 14 <em>kharif </em>crops the above-mentioned statement holds true. For example, in the case of <em>ragi</em>, the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">annual growth rate in MSP</a> <em>(kharif)</em> between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">inflation in WPI of ragi</a> was 10.57 percent during the 3-years span.</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Chart 1 Average annual growth rate in WPI &amp; MSP of selected kharif crops between 2016-17 and 2018-19" src="https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg" style="height:757px; width:1235px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">average annual growth rate</a> in MSP&#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.</em><br /><br /><em>Similarly, the above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">average annual rate of inflation</a> in WPI&#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.</em></div><div style="text-align:justify"><em>&nbsp;</em></div><p style="text-align:justify"><em><strong>Source: </strong>Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp; </em></p><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br /><em>MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access</em>&nbsp;<br /><br /><em>MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</em><br />---<br /><br />It could be observed from chart-1 that the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">annual growth rate in WPI</a> of maize <em>(-0.23 percent)</em>, arhar <em>(-15.12 percent)</em>, moong <em>(-10.61 percent)</em>, urad <em>(-12.92 percent)</em>, groundnut <em>(-3.09 percent)</em>, soyabean <em>(-0.03 percent)</em>, sunflower seed <em>(-1.63 percent)</em> and Niger seed <em>(-12.81 percent)</em> was negative between 2016-17 and 2018-19.<br /><br />Since official procurement is a small fraction of the production of each of the 13 <em>kharif</em> crops <em>(paddy excluded)</em>, the raising of MSP in the last 3 financial years had little impact on the inflation rate <em>(WPI-based)</em> of these crops.<br /><br />The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their <em>kharif</em> crops to <em>mandis</em> viz. market centres for bulk sale. Since there is <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">no official information</a> about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI <em>(Base 2011-12=100)</em> in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">various economists</a>.<br /><br /><strong>Inflation in retail prices</strong><br /><br />Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &#39;miscellaneous&#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general <em>(all groups)</em> in the rural areas.<br /><br /><strong>Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas</strong></div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Table 1 CPI inflation rate" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg" style="height:184px; width:774px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.<br /><br /><strong>Source: </strong>Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</em><br /><br />It may be noted that the &lsquo;miscellaneous&rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.<br /><br />Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &lsquo;miscellaneous&rsquo; group such as health and education vis-&agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&nbsp;&nbsp; &nbsp;<br /><br /><strong>References</strong><br /><br />Wholesale Price Index (WPI) Data <em>(2011-12=100)</em>, Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp;<br /><br />Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</div><div style="text-align:justify"><br />CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">click here</a> to access&nbsp;</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><br /><strong>Image Courtesy: Himanshu Joshi</strong></div>               </font>
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		'title' => 'Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate',
		'subheading' => '',
		'description' => '<div style="text-align:justify">It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.<br />
<br />
An analysis of 14 <em><a href="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi">kharif</a> </em>crops, namely paddy, <em>jowar </em>(sorghum), <em>bajra </em>(pearl millet), <em>ragi </em>(finger millet), maize, <em>arhar/ tur</em> (pigeon pea), <em>moong</em>, <em>urad</em> (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - <a href="tinymce/uploaded/MSP_4.jpg" title="MSP">MSP (<em>kharif</em>)</a> surpassed the average annual growth rate of Wholesale Price Index (<a href="tinymce/uploaded/WPI%20only.jpg" title="WPI only">WPI</a>) during the period from 2016-17 to 2018-19.<br />
<br />
Chart-1 shows that for all the 14 <em>kharif </em>crops the above-mentioned statement holds true. For example, in the case of <em>ragi</em>, the average <a href="tinymce/uploaded/MSP_4.jpg">annual growth rate in MSP</a> <em>(kharif)</em> between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of <a href="tinymce/uploaded/WPI%20only.jpg">inflation in WPI of <em>ragi</em></a> was 10.57 percent during the 3-years span.</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><img alt="Chart 1 Average annual growth rate in WPI &amp; MSP of selected kharif crops between 2016-17 and 2018-19" src="tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg" style="height:757px; width:1235px" /></div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><em><strong>Note: </strong>The above-mentioned calculated figures related to &#39;<a href="tinymce/uploaded/MSP_4.jpg">average annual growth rate</a> in MSP&#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.</em><br />
<br />
<em>Similarly, the above-mentioned calculated figures related to &#39;<a href="tinymce/uploaded/WPI%20only.jpg">average annual rate of inflation</a> in WPI&#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.</em></div>

<div style="text-align:justify"><em>&nbsp;</em></div>

<p style="text-align:justify"><em><strong>Source: </strong>Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp; </em></p>

<p style="text-align:justify">&nbsp;</p>

<div style="text-align:justify"><br />
<em>MSP for kharif crops 2018-19, please <a href="tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access</em>&nbsp;<br />
<br />
<em>MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</em><br />
---<br />
<br />
It could be observed from chart-1 that the average <a href="tinymce/uploaded/WPI%20only.jpg">annual growth rate in WPI</a> of maize <em>(-0.23 percent)</em>, arhar <em>(-15.12 percent)</em>, moong <em>(-10.61 percent)</em>, urad <em>(-12.92 percent)</em>, groundnut <em>(-3.09 percent)</em>, soyabean <em>(-0.03 percent)</em>, sunflower seed <em>(-1.63 percent)</em> and Niger seed <em>(-12.81 percent)</em> was negative between 2016-17 and 2018-19.<br />
<br />
Since official procurement is a small fraction of the production of each of the 13 <em>kharif</em> crops <em>(paddy excluded)</em>, the raising of MSP in the last 3 financial years had little impact on the inflation rate <em>(WPI-based)</em> of these crops.<br />
<br />
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their <em>kharif</em> crops to <em>mandis</em> viz. market centres for bulk sale. Since there is <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">no official information</a> about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI <em>(Base 2011-12=100)</em> in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">various economists</a>.<br />
<br />
<strong>Inflation in retail prices</strong><br />
<br />
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &#39;miscellaneous&#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general <em>(all groups)</em> in the rural areas.<br />
<br />
<strong>Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas</strong></div>

<p style="text-align:justify">&nbsp;</p>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><img alt="Table 1 CPI inflation rate" src="tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg" style="height:184px; width:774px" /></div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><em><strong>Note: </strong>The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.<br />
<br />
<strong>Source: </strong>Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please <a href="tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</em><br />
<br />
It may be noted that the &lsquo;miscellaneous&rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.<br />
<br />
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &lsquo;miscellaneous&rsquo; group such as health and education vis-&agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&nbsp;&nbsp; &nbsp;<br />
<br />
<strong>References</strong><br />
<br />
Wholesale Price Index (WPI) Data <em>(2011-12=100)</em>, Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp;<br />
<br />
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please <a href="tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify">MSP for kharif crops 2018-19, please <a href="tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br />
<br />
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</div>

<div style="text-align:justify"><br />
CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify">Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">click here</a> to access&nbsp;</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><br />
<strong>Image Courtesy: Himanshu Joshi</strong></div>
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	'metaTitle' => 'NEWS ALERTS | Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate',
	'metaKeywords' => 'minimum support price,Minimum Support Prices,Remunerative Prices',
	'metaDesc' => 'It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....',
	'disp' => '<div style="text-align:justify">It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.<br /><br />An analysis of 14 <em><a href="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi" title="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi">kharif</a> </em>crops, namely paddy, <em>jowar </em>(sorghum), <em>bajra </em>(pearl millet), <em>ragi </em>(finger millet), maize, <em>arhar/ tur</em> (pigeon pea), <em>moong</em>, <em>urad</em> (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP">MSP (kharif)</a> surpassed the average annual growth rate of Wholesale Price Index (<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only">WPI</a>) during the period from 2016-17 to 2018-19.<br /><br />Chart-1 shows that for all the 14 <em>kharif </em>crops the above-mentioned statement holds true. For example, in the case of <em>ragi</em>, the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">annual growth rate in MSP</a> <em>(kharif)</em> between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">inflation in WPI of ragi</a> was 10.57 percent during the 3-years span.</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Chart 1 Average annual growth rate in WPI &amp; MSP of selected kharif crops between 2016-17 and 2018-19" src="https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg" style="height:757px; width:1235px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">average annual growth rate</a> in MSP&#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.</em><br /><br /><em>Similarly, the above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">average annual rate of inflation</a> in WPI&#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.</em></div><div style="text-align:justify"><em>&nbsp;</em></div><p style="text-align:justify"><em><strong>Source: </strong>Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp; </em></p><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br /><em>MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access</em>&nbsp;<br /><br /><em>MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</em><br />---<br /><br />It could be observed from chart-1 that the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">annual growth rate in WPI</a> of maize <em>(-0.23 percent)</em>, arhar <em>(-15.12 percent)</em>, moong <em>(-10.61 percent)</em>, urad <em>(-12.92 percent)</em>, groundnut <em>(-3.09 percent)</em>, soyabean <em>(-0.03 percent)</em>, sunflower seed <em>(-1.63 percent)</em> and Niger seed <em>(-12.81 percent)</em> was negative between 2016-17 and 2018-19.<br /><br />Since official procurement is a small fraction of the production of each of the 13 <em>kharif</em> crops <em>(paddy excluded)</em>, the raising of MSP in the last 3 financial years had little impact on the inflation rate <em>(WPI-based)</em> of these crops.<br /><br />The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their <em>kharif</em> crops to <em>mandis</em> viz. market centres for bulk sale. Since there is <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">no official information</a> about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI <em>(Base 2011-12=100)</em> in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">various economists</a>.<br /><br /><strong>Inflation in retail prices</strong><br /><br />Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &#39;miscellaneous&#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general <em>(all groups)</em> in the rural areas.<br /><br /><strong>Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas</strong></div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Table 1 CPI inflation rate" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg" style="height:184px; width:774px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.<br /><br /><strong>Source: </strong>Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</em><br /><br />It may be noted that the &lsquo;miscellaneous&rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.<br /><br />Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &lsquo;miscellaneous&rsquo; group such as health and education vis-&agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&nbsp;&nbsp; &nbsp;<br /><br /><strong>References</strong><br /><br />Wholesale Price Index (WPI) Data <em>(2011-12=100)</em>, Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp;<br /><br />Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</div><div style="text-align:justify"><br />CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">click here</a> to access&nbsp;</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><br /><strong>Image Courtesy: Himanshu Joshi</strong></div>',
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	'id' => (int) 38129,
	'title' => 'Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate',
	'subheading' => '',
	'description' => '<div style="text-align:justify">It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.<br />
<br />
An analysis of 14 <em><a href="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi">kharif</a> </em>crops, namely paddy, <em>jowar </em>(sorghum), <em>bajra </em>(pearl millet), <em>ragi </em>(finger millet), maize, <em>arhar/ tur</em> (pigeon pea), <em>moong</em>, <em>urad</em> (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - <a href="tinymce/uploaded/MSP_4.jpg" title="MSP">MSP (<em>kharif</em>)</a> surpassed the average annual growth rate of Wholesale Price Index (<a href="tinymce/uploaded/WPI%20only.jpg" title="WPI only">WPI</a>) during the period from 2016-17 to 2018-19.<br />
<br />
Chart-1 shows that for all the 14 <em>kharif </em>crops the above-mentioned statement holds true. For example, in the case of <em>ragi</em>, the average <a href="tinymce/uploaded/MSP_4.jpg">annual growth rate in MSP</a> <em>(kharif)</em> between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of <a href="tinymce/uploaded/WPI%20only.jpg">inflation in WPI of <em>ragi</em></a> was 10.57 percent during the 3-years span.</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><img alt="Chart 1 Average annual growth rate in WPI &amp; MSP of selected kharif crops between 2016-17 and 2018-19" src="tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg" style="height:757px; width:1235px" /></div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><em><strong>Note: </strong>The above-mentioned calculated figures related to &#39;<a href="tinymce/uploaded/MSP_4.jpg">average annual growth rate</a> in MSP&#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.</em><br />
<br />
<em>Similarly, the above-mentioned calculated figures related to &#39;<a href="tinymce/uploaded/WPI%20only.jpg">average annual rate of inflation</a> in WPI&#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.</em></div>

<div style="text-align:justify"><em>&nbsp;</em></div>

<p style="text-align:justify"><em><strong>Source: </strong>Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp; </em></p>

<p style="text-align:justify">&nbsp;</p>

<div style="text-align:justify"><br />
<em>MSP for kharif crops 2018-19, please <a href="tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access</em>&nbsp;<br />
<br />
<em>MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</em><br />
---<br />
<br />
It could be observed from chart-1 that the average <a href="tinymce/uploaded/WPI%20only.jpg">annual growth rate in WPI</a> of maize <em>(-0.23 percent)</em>, arhar <em>(-15.12 percent)</em>, moong <em>(-10.61 percent)</em>, urad <em>(-12.92 percent)</em>, groundnut <em>(-3.09 percent)</em>, soyabean <em>(-0.03 percent)</em>, sunflower seed <em>(-1.63 percent)</em> and Niger seed <em>(-12.81 percent)</em> was negative between 2016-17 and 2018-19.<br />
<br />
Since official procurement is a small fraction of the production of each of the 13 <em>kharif</em> crops <em>(paddy excluded)</em>, the raising of MSP in the last 3 financial years had little impact on the inflation rate <em>(WPI-based)</em> of these crops.<br />
<br />
The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their <em>kharif</em> crops to <em>mandis</em> viz. market centres for bulk sale. Since there is <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">no official information</a> about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI <em>(Base 2011-12=100)</em> in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">various economists</a>.<br />
<br />
<strong>Inflation in retail prices</strong><br />
<br />
Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &#39;miscellaneous&#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general <em>(all groups)</em> in the rural areas.<br />
<br />
<strong>Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas</strong></div>

<p style="text-align:justify">&nbsp;</p>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><img alt="Table 1 CPI inflation rate" src="tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg" style="height:184px; width:774px" /></div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><em><strong>Note: </strong>The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.<br />
<br />
<strong>Source: </strong>Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please <a href="tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</em><br />
<br />
It may be noted that the &lsquo;miscellaneous&rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.<br />
<br />
Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &lsquo;miscellaneous&rsquo; group such as health and education vis-&agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&nbsp;&nbsp; &nbsp;<br />
<br />
<strong>References</strong><br />
<br />
Wholesale Price Index (WPI) Data <em>(2011-12=100)</em>, Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp;<br />
<br />
Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please <a href="tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify">MSP for kharif crops 2018-19, please <a href="tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br />
<br />
MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</div>

<div style="text-align:justify"><br />
CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify">Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">click here</a> to access&nbsp;</div>

<div style="text-align:justify">&nbsp;</div>

<div style="text-align:justify"><br />
<strong>Image Courtesy: Himanshu Joshi</strong></div>
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$metaTitle = 'NEWS ALERTS | Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate'
$metaKeywords = 'minimum support price,Minimum Support Prices,Remunerative Prices'
$metaDesc = 'It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing....'
$disp = '<div style="text-align:justify">It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre.<br /><br />An analysis of 14 <em><a href="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi" title="http://www.arthapedia.in/index.php%3Ftitle%3DCropping_seasons_of_India-_Kharif_%2526_Rabi">kharif</a> </em>crops, namely paddy, <em>jowar </em>(sorghum), <em>bajra </em>(pearl millet), <em>ragi </em>(finger millet), maize, <em>arhar/ tur</em> (pigeon pea), <em>moong</em>, <em>urad</em> (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="MSP">MSP (kharif)</a> surpassed the average annual growth rate of Wholesale Price Index (<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="WPI only">WPI</a>) during the period from 2016-17 to 2018-19.<br /><br />Chart-1 shows that for all the 14 <em>kharif </em>crops the above-mentioned statement holds true. For example, in the case of <em>ragi</em>, the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">annual growth rate in MSP</a> <em>(kharif)</em> between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">inflation in WPI of ragi</a> was 10.57 percent during the 3-years span.</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Chart 1 Average annual growth rate in WPI &amp; MSP of selected kharif crops between 2016-17 and 2018-19" src="https://im4change.in/siteadmin/tinymce/uploaded/Chart%201%20Average%20annual%20growth%20rate%20in%20WPI%20&amp;%20MSP%20of%20selected%20kharif%20crops%20between%202016-17%20and%202018-19.jpg" style="height:757px; width:1235px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP_4.jpg">average annual growth rate</a> in MSP&#39; in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal.</em><br /><br /><em>Similarly, the above-mentioned calculated figures related to &#39;<a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">average annual rate of inflation</a> in WPI&#39; in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.</em></div><div style="text-align:justify"><em>&nbsp;</em></div><p style="text-align:justify"><em><strong>Source: </strong>Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp; </em></p><p style="text-align:justify">&nbsp;</p><div style="text-align:justify"><br /><em>MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access</em>&nbsp;<br /><br /><em>MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</em><br />---<br /><br />It could be observed from chart-1 that the average <a href="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg" title="https://im4change.in/siteadmin/tinymce/uploaded/WPI%20only.jpg">annual growth rate in WPI</a> of maize <em>(-0.23 percent)</em>, arhar <em>(-15.12 percent)</em>, moong <em>(-10.61 percent)</em>, urad <em>(-12.92 percent)</em>, groundnut <em>(-3.09 percent)</em>, soyabean <em>(-0.03 percent)</em>, sunflower seed <em>(-1.63 percent)</em> and Niger seed <em>(-12.81 percent)</em> was negative between 2016-17 and 2018-19.<br /><br />Since official procurement is a small fraction of the production of each of the 13 <em>kharif</em> crops <em>(paddy excluded)</em>, the raising of MSP in the last 3 financial years had little impact on the inflation rate <em>(WPI-based)</em> of these crops.<br /><br />The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their <em>kharif</em> crops to <em>mandis</em> viz. market centres for bulk sale. Since there is <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">no official information</a> about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI <em>(Base 2011-12=100)</em> in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">various economists</a>.<br /><br /><strong>Inflation in retail prices</strong><br /><br />Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the &#39;miscellaneous&#39; group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general <em>(all groups)</em> in the rural areas.<br /><br /><strong>Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas</strong></div><p style="text-align:justify">&nbsp;</p><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><img alt="Table 1 CPI inflation rate" src="https://im4change.in/siteadmin/tinymce/uploaded/Table%201%20CPI%20inflation%20rate.jpg" style="height:184px; width:774px" /></div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><em><strong>Note: </strong>The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018.<br /><br /><strong>Source: </strong>Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</em><br /><br />It may be noted that the &lsquo;miscellaneous&rsquo; group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects.<br /><br />Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the &lsquo;miscellaneous&rsquo; group such as health and education vis-&agrave;-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.&nbsp;&nbsp; &nbsp;<br /><br /><strong>References</strong><br /><br />Wholesale Price Index (WPI) Data <em>(2011-12=100)</em>, Office of the Economic Adviser, Ministry of Commerce &amp; Industry, please <a href="http://eaindustry.nic.in/home.asp" title="http://eaindustry.nic.in/home.asp">click here</a> to access&nbsp;<br /><br />Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI" title="https://im4change.in/siteadmin/tinymce/uploaded/CPI%20MosPI.pdf" title="CPI MosPI">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">MSP for kharif crops 2018-19, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20July%202018.pdf">click here</a> to access<br /><br />MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please <a href="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD" title="https://im4change.in/siteadmin/tinymce/uploaded/MSP%20between%202013-14%20to%202017-18%20NABARD.pdf" title="MSP between 2013-14 to 2017-18 NABARD">click here</a> to access</div><div style="text-align:justify"><br />CACP Report on Price Policy for Kharif crops of 2018-19 season, please <a href="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615" title="http://cacp.dacnet.nic.in/ViewQuestionare.aspx?Input=2&amp;DocId=1&amp;PageId=39&amp;KeyId=615">click here</a> to access</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify">Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please <a href="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html" title="https://www.im4change.org/latest-news-updates/hidden-figures-the-numbers-show-absolute-deterioration-in-the-condition-of-farmers-prabhat-patnaik-4686168.html">click here</a> to access&nbsp;</div><div style="text-align:justify">&nbsp;</div><div style="text-align:justify"><br /><strong>Image Courtesy: Himanshu Joshi</strong></div>'
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Deflation in WPI of 8 kharif crops observed during 2016-17 to 2018-19, while their MSPs grew at a positive rate

It is being said by economists that unlike the issue of low food production that gripped Indian agriculture for long in the past, the present problem is about farmers not getting remunerative prices against the crops that they are growing. According to farmer leaders, the policymakers are too late to realise that bitter truth. As a result, there is a growing disenchantment in the rural hinterland against the ruling government at the Centre. An analysis of 14 kharif crops, namely paddy, jowar (sorghum), bajra (pearl millet), ragi (finger millet), maize, arhar/ tur (pigeon pea), moong, urad (black gram), cotton, groundnut, soyabean, sunflower seed, sesamum and Niger seed by the Inclusive Media for Change team has found that the average annual growth rate of minimum support prices - MSP (kharif) surpassed the average annual growth rate of Wholesale Price Index (WPI) during the period from 2016-17 to 2018-19. Chart-1 shows that for all the 14 kharif crops the above-mentioned statement holds true. For example, in the case of ragi, the average annual growth rate in MSP (kharif) between 2016-17 and 2018-19 was 22.39 percent. However, the average annual rate of inflation in WPI of ragi was 10.57 percent during the 3-years span.     Note: The above-mentioned calculated figures related to 'average annual growth rate in MSP' in the chart-1 are based on the MSPs of Paddy Common, Jowar (Maldandi), Bajra, Ragi, Maize, Arhar (Tur), Moong, Urad, Cotton (long staple), Groundnut (in shell), Soyabean Yellow, Sunflower Seed, Sesamum and Niger seed. It may be noted that officially the MSP figures are given according to crop year (Fair Average Quality), in Rs. per quintal. Similarly, the above-mentioned calculated figures related to 'average annual rate of inflation in WPI' in the chart-1 are based on the WPI (Base 2011-12=100) of Paddy, Jowar, Bajra, Ragi, Maize, Arhar, Moong, Urad, Raw Cotton, Groundnut Seed, Soyabean, Sunflower, Sesamum (Gingelly Seed) and Niger seed. The WPI figures in our analysis are according to financial year (FY). The WPI figures related to FY 2018-19 is the average WPI during April, 2018 to November, 2018.   Source: Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce & Industry, please click here to access    MSP for kharif crops 2018-19, please click here to access  MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please click here to access --- It could be observed from chart-1 that the average annual growth rate in WPI of maize (-0.23 percent), arhar (-15.12 percent), moong (-10.61 percent), urad (-12.92 percent), groundnut (-3.09 percent), soyabean (-0.03 percent), sunflower seed (-1.63 percent) and Niger seed (-12.81 percent) was negative between 2016-17 and 2018-19. Since official procurement is a small fraction of the production of each of the 13 kharif crops (paddy excluded), the raising of MSP in the last 3 financial years had little impact on the inflation rate (WPI-based) of these crops. The analysis by the Inclusive Media for Change team is based on the assumption that most farmers bring their kharif crops to mandis viz. market centres for bulk sale. Since there is no official information about the farm gate price, or the price that peasants actually get for their crops, we have relied on WPI (Base 2011-12=100) in our analysis. In reality, it may be the case that farmers receive a fraction of the wholesale prices, as has been pointed out by various economists. Inflation in retail prices Apart from being producers of crops, farmers are consumers too. Table-1 indicates that the rate of inflation in the Consumer Price Index of the 'miscellaneous' group exceeded the rate of inflation in Consumer Food Price Index (CFPI) as well as Consumer Price Index general (all groups) in the rural areas. Table 1: Rate of inflation in retail prices (Base 2012=100) in rural areas       Note: The CPI figures in our analysis are according to FY. The CPI figures related to FY 2018-19 is the average CPI during April, 2018 to November, 2018. Source: Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation (MoSPI), please click here to access It may be noted that the ‘miscellaneous’ group comprises Household goods and services; Health; Transport and communication; Recreation and amusement; Education; and Personal care and effects. Against the backdrop of privatisation of most services, rural areas have witnessed a higher rate of inflation in services that are included in the ‘miscellaneous’ group such as health and education vis-à-vis the rate of inflation in CFPI and CPI. Thus, ensuring remunerative prices for crops, which farmers and peasants grow, among other things, is essential to cover the rising cost of such privatised services.     References Wholesale Price Index (WPI) Data (2011-12=100), Office of the Economic Adviser, Ministry of Commerce & Industry, please click here to access  Consumer Price Indices Warehouse, Ministry of Statistics and Programme Implementation, please click here to access   MSP for kharif crops 2018-19, please click here to access MSP (in Rs. per quintal) according to crop years (2013-14 to 2017-18) as on 7th June, 2017, NABARD, please click here to access CACP Report on Price Policy for Kharif crops of 2018-19 season, please click here to access   Hidden figures: The numbers show absolute deterioration in the condition of farmers -Prabhat Patnaik, The Telegraph, 12 December, 2018, please click here to access    Image Courtesy: Himanshu Joshi