Planning Commission Member Abhijit Sen on Wednesday said food inflation is expected to decline to 4 to 5 per cent by November from the current over 16 per cent after the arrival of Kharif (summer) crops.
The services sector, which plays the biggest role in shaping the economy, is facing loads of issues currently. The largest segments, financial and real estate, are struggling to cope with bad debts and low demand for houses.
The committee would submit its report in the next two weeks.
Rajan said that demand needs to be reduced without having severe effects on investment and supply.
Food inflation, which has declined 7 weeks in a row, was at 10.15 per cent for the week ended November 13.
The finance ministry on Tuesday cited "green shoots" of recovery in agriculture, manufacturing and services sectors, and said the prompt policy measures taken by the government and RBI have helped reinvigorate the economy with minimal damage. Stating that the agricultural sector remains the foundation of the Indian economy, the ministry said that a normal monsoon, as has been forecast, should support the rebooting of economy.
The overall deficiency in the cumulative monsoon rainfall since the beginning of the season has shrunk from about 46 per cent in the end of June to 24 per cent by July 16. The key agricultural belt of north-western India is still facing about 44 per cent rainfall deficiency, though there have been some welcome showers throughout the region in the past couple of weeks. The north-eastern region is also facing about 40 per cent rain deficieny.
The Budget allocation for Ministry of Agriculture and allied activities has grown by 114% since 2010-11
Cabinet sub-committee to review the situation and take necessary steps.
India's foodgrain production is estimated to decline by 7.51 per cent to 216.85 million tonnes in the 2009-10 season mainly due to a fall in summer output owing to the worst drought in 30 years.
The southwest monsoon season was deficient by 16 per cent.
The Election Commission on Monday issued a notice to Union Agriculture Minister and Nationalist Congress Party supremo Sharad Pawar for alleged violation of the Model Code of Conduct for the October 13 assembly elections in Maharshtra.
Food grains production in the country would go down by 10-15 per cent in the current fiscal due to deficient rainfall, an Agriculture Ministry official said.
That day is not very far when farmers will get double their present income, says PM.
The government's decision to downplay the monsoon's failure has only worsened its credibility and will lead to a worse panic
Higher prices of onion and other vegetables and fruits pushed up inflation to 6.46 per cent in September.
These decisions were announced by food and agriculture minister Sharad Pawar in the Rajya Sabha on Friday, a day after Prime Minister Manmohan Singh and his cabinet colleagues were briefed on the monsoon situation and Kharif sowing. Allaying fears of shortage of foodgrain, Pawar said, "Stock position is quite comfortable. We have sufficient stock position for 13 months in our kitty".
Though three crops of onions are raised in a year - early kharif, late kharif and rabi - their harvests are not evenly spread out.
The Consumer Price Index hit the lowest in six months in March at 4.83 per cent.
The total water stock in the country's 81 major reservoirs is still 57 per cent of their live storage capacity, falling 12 per cent short of the normal level for this time. This is a cause for concern for both irrigation and hydro power production.
A five-seven per cent agriculture growth in 2013-14 would mean farming might exceed the 12th Five-Year Plan annual growth target of four per cent, if the trend continues.
The irony of this scheme to benefit farmers is that it could add to the problems for the government because the mechanism to procure and store crops like pulses, coarse cereals and oilseeds barely exists.
The outlook of a negative growth in agriculture comes on the back of the Indian Meteorological Department's revised rainfall forecast and uncertain impact of mitigants such as ground water harvesting and modification of cropping patterns.
Prices of agricultural commodities have risen 23 per cent so far this month.
As of the week ended July 2017, the unemployment rate was 3.1 per cent. This is the lowest unemployment rate recorded. Rural unemployment was also very low at 2.8 per cent.
The monsoon situation and its consequences for different sectors of economy was reviewed in a high-level meeting chaired by Prime Minister Manmohan Singh on July 12.
The core stir issues of remunerative prices and a basic income for farmers has taken a political turn with three major agrarian states of Madhya Pradesh, Rajasthan and Chhattisgarh going to the polls in the next few months
They are worried that the Kharif crop may not be sown at the usual time in June, which accounts for 163 mm of 890 mm for the entire monsoon season. They\nfear that they may be forced to sell their land in order to repay their debts and\nmove to cities like Mumbai or Delhi in search of work as labourers.
The prolonged break in the rainy season that has caused widespread concern over the delay in kharif sowing is finally ending with the monsoon likely to advance into Mumbai and adjoining parts of Maharashtra in two or three days.
The alleged 'water blockade' by India could adversely affect kharif crops, particularly cotton and sugarcane that are in maturity stage and require final watering, and the sowing of rabi crops early next month, sources told the Dawn newspaper.
Under the Bhavantar Bhugtan Yojana, the state pays a portion of the loss incurred by farmers for selling below the MSP, capped up to a limit.
Onion has become costlier by over 33 per cent in the last one week and over 70 per cent in September so far, reports Dilip Kumar Jha.
he government is examining a plan of bank recapitalisation and considering an urban version of MNREGS.
Procurement by the end of this season is likely to touch a new record of 29-30 million tonnes, surpassing the earlier high of 28.4 million tonnes. The country's rice output in 2008-09 is also estimated at an all-time record of 98.89 million tonnes. Punjab has been the largest contributor to the rice stock at 8.38 million tonnes, followed by Andhra Pradesh, Uttar Pradesh and Chattisgarh. Procurement is up in all top-producing states except in Haryana and Chattisgarh.
Cabinet sub-committee to meet to review the situation and take necessary steps. Sanjay Jog reports
'It is a shame for a woman to defecate in the open.'
After a delayed start, the monsoon is advancing steadily.
'When I met the prime minister on November 15 there was no RBI report with the prime minister as to why this was done.' 'When I asked the PMO officer about this, he said the RBI did not bring this to the PM and did it independently.' 'When I asked how could the RBI ban DCCBs from accepting deposits from farmers in old notes when the government gazette released on November 9 allowed them to do so, this officer told me that not even senior PMO officials had any idea about this RBI ban.'
Rajan also said the outlook for agriculture is subdued, in view of both rabi and kharif prospects being hit by monsoon vagaries.
According to agriculture department officials, the state is heading for a bumper paddy harvest despite a slight reduction in acreage compared with the previous year.
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