Data Drive: The rural demand picture

As a large portion of rural income is derived from non-agriculture sources, government-spending will remain the key to boost rural demand.

Ethiopia alone wants about 0.2 MT of wheat. A panel comprising senior officials from the ministries of commerce, food, agriculture and external affairs is evaluating the requests. The number of wheat supplies to each of them will be determined based on several criteria, an official source said.
Rural demand may not get a boost as real rural wage growth has remained weak and farm profitability has been stagnant for crops such as rice and wheat.

A moderate increase in minimum support prices (MSP) of key crops that was announced by the Centre last week will not be too inflationary as the market price of many summer crops are above the announced MSP. However, rural demand may not get a boost as real rural wage growth has remained weak and farm profitability has been stagnant for crops such as rice and wheat. This is despite the expectations of a normal monsoon this year, and commodity prices reigning high; the pain-point may be input costs.

As a large portion of rural income is derived from non-agriculture sources, government-spending will remain the key to boost rural demand.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Opinion
Photos