Food Inflation Stays High Amid Crop Damage and Export Curbs; Agriculture Reforms Needed to Boost Growth
• Food inflation remains high due to lower kharif production caused by uneven monsoon rains and weather shocks. Prices of rice, wheat, pulses and vegetables expected to stay elevated.
• Export restrictions on various food commodities put in place to boost domestic supplies and contain inflation. But may curb farm incomes.
• Unseasonal rains damaged standing rabi crops like wheat; lower rabi acreage also likely due to poor soil moisture post-monsoon.
• Comprehensive agriculture reforms needed in states to boost growth, attract investments in supply chains. Role of private sector key.
• Sectors like dairy showing high growth rates. Need to replicate models across agriculture to achieve goals of developed India by 2047.