There is no hope of quick relief from stubborn inflation, grain prices will rise by about 15 percent. There is no hope of quick relief from stubborn inflation, grain prices will rise by about 15 percent. money moguls

Photo: PTI Cereal

if you are wondering There is likely to be no relief from stubborn inflation in the coming days. In fact, Crisil has said in a report that grain prices are expected to be 14-15 percent higher in the next financial year than the average of the last five years. If we talk about the reason, the vagaries of climate change, the strong global demand and the increase in domestic demand. Its direct effect can be seen in inflation. Inflation may rise further. Even in the current financial year, grain prices have risen significantly year on year in the first ten months. The report says that while wheat and rice prices have risen by 8 to 11 percent, maize, jowar and bajra prices have risen by 27 to 31 percent.

Wheat production expected to remain high

Crisil expects wheat production to be higher in the current rabi season. Despite the continued ban on exports from Jan 2023 (free food grains scheme announced in Apr 2020) and discontinuation of Pradhan Mantri Garib Kalyan Anna Yojana which is expected to reduce the stock position to a comfortable level compared to last year. The above measures will put pressure on wheat prices for fiscal year 2024, according to the report. According to Crisil, for the main kharif crops like rice, maize, bajra and jowar, production is expected to be higher for the next fiscal year as well, provided the monsoon is normal and well distributed.

Salaries do not increase compared to inflation in the villages

The rate of increase in village wages is below rising inflation and the government must continue to support policies to help people in smaller towns and rural areas. This is what he has said in a report by Crif High Mark, a credit information company. It has been said that wages in the villages do not increase according to inflation. Therefore, there is a need for intervention at the policy level. He claims that due to high inflation, real wages in the villages have fallen and demand has been slow. Faced with such a situation, it is necessary that the government and policy makers continue to support rural areas.” According to the report, in the first half of last year 2022, rural inflation has been higher than inflation in cities. Consumption in the villages has decreased.

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