Economic Survey 2024-25 has called for linking the high-frequency price monitoring data for essential food items collected by various agencies within the country. This is required to quantify and monitor price build-up at each stage from the farm gate to the final consumer, as suggested by the Economic Survey. 

Economic Survey stressed the need for robust data collection and analysis systems to monitor prices, stocks,

and storage and processing facilities in various tiers of government. This data should be used to identify areas for improvement and make informed policy decisions, it added. 

Noting that India faces a persistent deficit in the production of pulses and oilseeds, along with frequent fluctuations in tomato and onion production, leading to price pressures, the Survey has called for focused research to develop climate-resilient crop varieties,

enhancing yield and reducing crop damage. “Efforts to expand the area under pulses in rice-fallow regions are likely to help”, the Survey added. 

The survey said that Promoting extension activities is crucial. Farmers should receive training on best practices, the use of high-yield and disease-resistant seed varieties, and targeted interventions to improve agricultural practices in the major growing regions for pulses, tomatoes, and onions. 

The survey noted that these reform measures could be considered from the perspective of ensuring long-term price stability. 

The Economic Survey also highlighted that India faces the dual challenge of improving agricultural productivity while managing the impact of climate change. It added that the development of climate-resilient crop varieties and enhanced farming practices are essential to mitigate the effects of extreme weather events and reduce volatility in food prices. 

India’s food inflation was driven by supply chain disruptions, extreme weather conditions, and consequent reduced harvests in key food items like vegetables and pulses. According to the survey, extreme weather events such as heatwaves and unseasonal rainfall have affected food production and supply chains. 

The government’s proactive policy interventions have been crucial in stabilizing inflation. These measures include strengthening buffer stocks for essential food items, periodic open market releases, and efforts to ease imports during supply shortages. 

Despite these challenges, there are positive signs for inflation management in India. The Reserve Bank of India and the International Monetary Fund (IMF) project that India’s consumer price inflation will gradually align with the target of around 4 per cent in FY26. 

As per the IMF, the global inflation rate, which peaked at 8.7 per cent in 2022, moderated to 5.7 per cent by 2024. In India, retail inflation saw a reduction from 5.4 per cent in FY24 to 4.9 per cent in FY25 (April-December), aided by various government initiatives and monetary policy measures.

Related Topics