Agricultural price policy’s failures5 min read 17 Mar 2015, 11:55 PM IST
Failure to rein in prices of essential food items for last 5 years a clear indication of the lack of food price stabilization mechanism
The wholesale price inflation at minus 2% may be music to the ears of the government but not to the millions of farmers who have seen prices of most agricultural commodities decline. In fact, most of the decline on a year-on-year (y-o-y) basis in the wholesale price index (WPI) may be attributable to the sharp decline in petroleum prices, which fell by 48%, along with minerals, which fell by 26%. Some of this has also been passed on to lower input costs in manufacturing, with the manufacturing price index increasing marginally by 0.3% y-o-y.