Monday, Sep 28, 2020 | Last Update : 06:36 PM IST

188th Day Of Lockdown

Maharashtra1339232103001535571 Andhra Pradesh6756746050905708 Tamil Nadu5808085251549313 Karnataka5755664622418582 Uttar Pradesh3870853258885594 Delhi2711142366515235 West Bengal2474252169214781 Odisha209374173571850 Telangana1872111564311107 Bihar178882164537888 Kerala175385117917678 Assam169985139977655 Gujarat1332191132403417 Rajasthan1288591077181441 Haryana1237821059901307 Madhya Pradesh117588932382207 Punjab107096840253134 Chhatisgarh9856566860777 Jharkhand7770964515661 Jammu and Kashmir69832495571105 Uttarakhand4533233642555 Goa3107125071386 Puducherry2548919781494 Tripura2412717464262 Himachal Pradesh136799526152 Chandigarh112128677145 Manipur9791760263 Arunachal Pradesh8649623014 Nagaland5768469311 Meghalaya5158334343 Sikkim2707199431 Mizoram178612880
  Business   Economy  25 Mar 2019  Food inflation likely to go up to 2 pc in FY20: Goldman Sachs report

Food inflation likely to go up to 2 pc in FY20: Goldman Sachs report

PTI
Published : Mar 25, 2019, 4:58 pm IST
Updated : Mar 25, 2019, 4:58 pm IST

Goldman Sachs said focus has now shifted to farmers who are protesting against low food prices and demanding higher returns on their crops.

 "Food inflation is likely to remain subdued going forward," Goldman Sachs report said.

Mumbai: Food inflation in the country is likely to go up to 2 per cent in the financial year 2019-20 from the 0.7 per cent estimated for FY19, a report said Monday.

It can be noted that the low food prices have been one of the prime factors which have aided the RBI to be more accommodatory in its rate setting recently.

 

In the report, foreign brokerage Goldman Sachs attributed the low food prices in the last few months to the prices of cereals and vegetables which have been low for some time.

Deregulation of markets, which saw delisting of vegetables from the Agriculture Produce and Marketing Committee Act (APMC) in 14 states, has helped the vegetable prices, it said.

In the case of cereals, "active food management" policies have helped, it said, adding the government released buffer stocks in large quantities and went in for higher imports on this front.

Going forward, the food inflation is unlikely to shoot up sharply unless there is some shock related to weather events, it said.

 

"Food inflation is likely to remain subdued going forward," it said, adding average food inflation will go up in the 1.5-2 per cent range in FY20 from the 0.7 per cent in FY19.

The brokerage said the focus has now shifted to farmers who are protesting against low food prices and demanding higher returns on their crops.

It can be noted that in the last year of the current regime, there have been multiple marches by farmers, especially the one in the national capital as well as one at the financial capital to voice their concerns.

The government responded first by assuring to double farmer income in five years, then promised a return of over 150 per cent to farmers and also announced income support of Rs 6,000 per year for the small and marginalised farmers.

 

Tags: food inflation, goldman sachs, deregulation, agriculture produce and marketing committee, apmc
Location: India, Maharashtra, Mumbai (Bombay)