The NCEAR has indicated some improvement in the fourth quarter of the current financial year.
The finance minister has increased the quantum of rural credit, with particular emphasis on short-term crop loans for small farmers and focussed heavily on improving food storage and processing infrastructure as well as supply chain management.
Inflation in the 'fuel and power' basket in December slumped to 8.38 per cent, nearly half of 16.28 per cent.
To a specific question on the change in RBI's stance from "neutral" to "accommodative", Das said it means that there will not be any rate hike from here on.
Monetary Policy- Easing expected to happen later this financial year.
According to the global financial services major, inflation may remain sticky, with a possible El Nino effect on the monsoon likely to push up food prices and geopolitical uncertainties seen pumping up global commodity rates.
NITI Aayog has been working on an action plan to relieve rural distress and energise the agricultural sector
Strict lockdown-like restrictions are already in place in the southern stateand the Pinarayi Vijayan government decided to clamp the complete shutdown in the wake of severe spike in the positive cases.
With economic growth slowing to a six-year low, IMF Chief Economist Gita Gopinath says the government should undertake structural reforms such as bank clean-up and labour reforms to address the slowdown in domestic demand. She rooted for government policies focusing on managing a slowdown in domestic demand, and on boosting productivity growth and supporting employment creation in the medium term.
With satisfactory progress of monsoon rainfalls prompting farmers to bring in additional area under basmati sowing, prices are set to fall lower going forward.
The wholesale price index based inflation in June declined to 7.25 per cent from 7.55 per cent in the previous month.
Swarms of immature pink locusts and adult yellow locusts are currrently active. Not only are fresh locusts swarms expected to arrive in the coming weeks, but even those already present in India have mated and are breeding new offspring.
Government's effective supply-side measures and commendable commitment to fiscal consolidation will have a salutary impact on inflation, says the RBI report.
UN body Food and Agriculture Organisation (FAO) has revised upwards India's rice production to 100 million tonnes (MT) in the 2012-13 crop year on the back of revival of rains in August and September.
Inflation data for June has not brought any cheer to the markets. From this data, the possibility of a rate cut is negligible. Deficient monsoons and higher food prices would make any rate action difficult.
In the second policy review under Governor Shaktikanta Das, the six-member Monetary Policy Committee voted 4:2 in favour of the rate cut.
The minister blamed 'fragmented farming, provisions in the Agricultural Produce Marketing (Development & Regulation) Act, lack of cold chain facilities, transportation, proper storage and processing facilities' for the losses.
'Both IIP and CPI inflation numbers are showing a huge disconnect from the leading indicators.'
The price rise measured in terms of Wholesale Price Index rose for the second straight month, to 5.79 per cent in July, on account of double digit rise in prices of food articles, mainly vegetables, including onion.
Deficiency in rainfall and the resultant decline in food grains and oilseeds output would exert inflationary pressures and need to be cushioned against the possible delay in monsoon, an Assocham study said.
While a pick-up in summer monsoon rains in recent weeks is expected to cool food inflation, most analysts don't anticipate another rate cut before a new governor is on the job
Slowing inflation prompted the RBI to cut the policy repurchase rate last month by 25 basis points to 6.50 percent, the lowest since 2011.
The economy is gaining traction with gradual pick up in manufacturing activity and moderation in contraction of services, spurred by comfortable liquidity conditions, an RBI article on Tuesday said. Observing that the retreat of the second wave of coronavirus pandemic has been slow, the RBI in an article on the 'State of Economy' said, the aggregate demand conditions are buoyed by the release of pent-up demand post unlock, while the supply situation is improving with the monsoon catching up to its normal levels and sowing activity gaining pace. "Reaffirming the traction that the economy is gaining, the manufacturing activity is gradually turning around, while contraction in services has moderated.
Wall Street brokerage Bank of America Securities has pencilled in lower than the consensus retail inflation for the current fiscal year at 5 per cent, but higher than the previous forecast of 4.7 per cent. Stating that the June print will be critical for the future trajectory -- after the extremely high 6.3 per cent print in May, the brokerage in a report on Friday revised upwards its forecast by 30 bps to an yearly average of 5 per cent for the year to March 2022. "Though the June print will be critical for future trajectory, beyond near-term, we find some comfort from our analysis of four key factors that are likely to influence CPI inflation the most.
We need to invest in the science of monsoons and weather forecasting.
The forecast of deficient monsoon rainfalls scared farmers.
Food inflation is still very much a problem and needs fixing urgently, but the bad monsoon apparently did not make it worse.
India is gearing up to introduce a six-member monetary policy committee that would vote on interest rates.
El Nino, which refers to warmer-than-average sea surface temperatures in the central and eastern tropical Pacific Ocean, will likely to keep CPI inflation up at 8-10 per cent in the second half of 2014 and will pose a 50-70 basis point risk to this fiscal's growth expectation, the report by financial services major Bank of America Merrill Lynch said.
The CII has suggested a 5-point agenda on the measures that need to be undertaken by central and state governments to stave off the adverse effects of a deficient monsoon. Let's find out what this agenda is. . .
The IMD attributed the projection to a weakening of El Nio and the Indian Ocean Dipole turning positive.
Softening inflation, Das said would make available more policy space to the central bank to address risks to the growth going forward.
.jpg)
We invite our readers to share their thoughts on water conservation with us on our social networking platform, ZaraBol -- Click #How-to-Conserve-Water to post
This was the near-unanimous replies of 10 market participants.
There are few concerns in India's growth story.
Indian economy is expected to expand at 8.5-9 per cent over 10-15 year time frame once the structural issues hampering growth are addressed by the government.
Twenty teams of the NDRF, comprising about 900 rescue persons, have been deployed in the state.
Raj Bhavan sources said the swearing-in ceremony will be held at 11 am on Sunday, a day before the monsoon session of the Maharashtra legislature, the last before assembly polls later this year, begins.
The decision, taken by the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi, comes less than a year before next general election.
The food ministry is likely to fix the selling price of wheat and rice lower than the current market price.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances