Mumbai, amid a debate over possible disenchantment among farmers due to political focus on stopping price rise, RBI Governor Shaktikanta Das on Tuesday said lower inflation is also beneficial for farmers.
Policymakers always struggle with the dilemma of balancing multiple objectives, and keeping prices of agricultural products low to serve consumers while depressing farmers' incomes is one such conundrum, Das said at a House event. of Commerce and Industry, Bombay here.
"Let us also remember that the farmer is also a consumer. Besides wheat, he buys many other things for his daily life. Farmers are also interested in having low inflation," he said.
The comments, which come weeks after the election results, take on importance because the setbacks suffered by the ruling BJP in some areas such as Maharashtra, where onion farmers were left angry, have been analyzed as consequences of a pro-consumer stance by the government that It suppressed farmers' income.
Das said any government has to move forward in a "balanced" manner and weigh the interests of farmers against those of consumers.
“It is a complicated and complex task,” he said, citing the RBI's own dilemmas over exchange rate management as one such example.
He said if headline inflation comes down from 6 per cent to 4 per cent, it will increase the purchasing power of each of the 140 crore Indians, which in turn will have ripple effects that will benefit purchasing power, consumption, growth and also employment. .
The Governor, however, said there is "still a lot of work" to be done, although some successes have been achieved.
"Many achievements have been made, but in the agricultural sector there is still a lot of work to be done, especially in terms of improving supply chains and the value chain framework," he said.
The governor also said the sector has become much more climate resilient in recent years.
Policymakers always struggle with the dilemma of balancing multiple objectives, and keeping prices of agricultural products low to serve consumers while depressing farmers' incomes is one such conundrum, Das said at a House event. of Commerce and Industry, Bombay here.
"Let us also remember that the farmer is also a consumer. Besides wheat, he buys many other things for his daily life. Farmers are also interested in having low inflation," he said.
The comments, which come weeks after the election results, take on importance because the setbacks suffered by the ruling BJP in some areas such as Maharashtra, where onion farmers were left angry, have been analyzed as consequences of a pro-consumer stance by the government that It suppressed farmers' income.
Das said any government has to move forward in a "balanced" manner and weigh the interests of farmers against those of consumers.
“It is a complicated and complex task,” he said, citing the RBI's own dilemmas over exchange rate management as one such example.
He said if headline inflation comes down from 6 per cent to 4 per cent, it will increase the purchasing power of each of the 140 crore Indians, which in turn will have ripple effects that will benefit purchasing power, consumption, growth and also employment. .
The Governor, however, said there is "still a lot of work" to be done, although some successes have been achieved.
"Many achievements have been made, but in the agricultural sector there is still a lot of work to be done, especially in terms of improving supply chains and the value chain framework," he said.
The governor also said the sector has become much more climate resilient in recent years.
