Opinion | India now faces its own version of Soviet Union’s scissors crisis
Managing relative price of food in terms of industrial goods will be one of the biggest policy challenges for the govt
Inflation numbers released by the government earlier this month tell an important story. The prices that consumers pay for food have been falling for three months in a row. Wholesale food prices have fallen for six months in a row. Roshan Kishore pointed out in Hindustan Times that this is the first time since 1990 that the prices farmers get for their produce at the farm gate have fallen for six consecutive months. Farmer incomes have taken a hit even if one assumes some amount of productivity gains in Indian agriculture.