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if you are wondering It is not possible that there will be 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 per cent 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, strong global demand and increase in domestic demand. Its direct effect can be seen on inflation. Inflation may increase further. Even in the current financial year, the prices of cereals have increased significantly on a year-on-year basis in the first ten months. The report said that while the prices of wheat and paddy have increased by 8-11 per cent, the prices of maize, jowar and bajra have gone up by 27-31 per cent.
Wheat production expected to remain high
Crisil expects wheat production to be higher in the current rabi season. Despite continued ban on exports from January 2023 (free food grain scheme announced in April 2020) and discontinuation of Pradhan Mantri Garib Kalyan Anna Yojana, which is expected to bring down the stock position to a comfortable level as compared to last year. The above measures will put pressure on wheat prices for FY2024, said the report. According to Crisil, for major kharif crops such as paddy, maize, bajra and jowar, production is expected to be higher for the next fiscal as well, provided the monsoon is normal and well-spread.
Wages are not increasing compared to inflation in villages
The rate of increase in wages in villages is lower than rising inflation and the government should continue with policy support to help people in smaller towns and rural areas. This has been said in a report by Crif High Mark, a credit information company. It has been said that the wages in the villages are not increasing according to the inflation. Therefore, there is a need for intervention at the policy level. It states that due to high inflation, real wages in villages have come down and demand has been sluggish. In such a situation, it is necessary for the government and policy makers to continue to support rural areas. ”According to the report, in the first half of last year 2022, rural inflation has been higher than the inflation of cities. Consumption in villages has decreased.
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