Negative signals: on falling inflation rates
Falling food prices will intensify rural distress; the solution is meaningful agricultural reform
The days when inflation could topple governments appear to be gone. It is now time for the government to worry about falling prices, especially of food. Retail inflation dropped to a 17-month low of 2.33% in November, as compared to 3.31% in October, primarily due to the fall in the prices of various essential food items. Food prices fell by a huge 6.96 percentage points compared to a year ago and, at minus 2.61%, are now in deflationary territory for the second successive month. The fall in inflation is obviously good news for consumers, particularly those in urban India who are happy to pay less for their purchases; also for the Reserve Bank of India, which will now have more room for manoeuvre in the matter of interest rates. But it is bad news for the producers of basic food items who are located in the distress-affected rural parts of the country, with falling farm incomes also impacting landless labour and rural demand. At the heart of this problem is the unpredictability of farm prices, which are known to exhibit extreme levels of volatilityowing to various supply-side issues that plague the agricultural sector. Though farmer producer companies have stepped in with help and guidance to farmers to use hedging tools to minimise price risks, they are too few and far between to make a difference. And even when their produce finally commanded impressive prices in the retail market, the cartelised agricultural marketing system has made sure that farmers received little to nothing.
Ahead of the general election next year, State governments across the country are likely to resortto short-term relief measures such as farm loan waivers to temporarily relieve farmers of their deep distress. Further, with the issue of rural distress now expected to significantly affect the general election verdict, the Bharatiya Janata Party and the Congress are already engaged in a competitive battle to offer the highest extent of loan waiver to farmers. There will also be pressure to announce higher minimum support prices for various agricultural goods. It is another matter that no government has ever had the wherewithal to deliver on such lofty promises. In fact, the poor implementation of MSPs is one of the reasons for farmers taking to the streets in protest. The Centre may prod the new RBI Governor to adopt a more dovish monetary policy stance in the run-up to the election citing falling inflation figures. But none of these measures will help farmers, who have increasingly taken the protest route of late to make their demands heard, in any meaningful manner in the long run. Real agricultural reform is crucial to enable farmers to freely make their own business decisions without the grabbing hand of the government.
MEANINGS AND WORDS
1) topple
Meaning : overbalance or cause to overbalance and fall.
Synonyms : collapse
Antonyms : hold
Example : “she toppled over when I touched her”
2) distress
Meaning : extreme anxiety, sorrow, or pain.
Synonyms :affliction
Antonyms : aid
Example : “to his distress he saw that she was trembling”
3) impacting
Meaning : come into forcible contact with another object.
Synonyms : clash
Antonyms : compliment
Example : “the shell impacted twenty yards away”
4) exhibit
Meaning : publicly display (a work of art or item of interest) in an art gallery or museum or at a trade fair.
Synonyms : display
Antonyms : hiding
Example : “only one sculpture was exhibited in the artist’s lifetime”
5) unpredictability
Meaning : inability to be predicted; changeability.
Synonyms : anxiety
Antonyms : calm
Example : “the unpredictability of the British weather”
6) owing
Meaning : (of money) yet to be paid.
Synonyms : due
Antonyms : green
Example : “no rent was owing”
7) hedging
Meaning : the planting or trimming of hedges.
Tamil Meaning :
Synonyms : sidestep
Antonyms : meet
Example : “contract work for hedging and ditching”
8) cartelised
Meaning : (of manufacturers or suppliers) form a cartel in (an industry or trade).
Synonyms : assemble
Antonyms : divide
Example : “the domestic industry retains the benefits of its expanded productivity by cartelizing the market”
9) resort
Meaning : turn to and adopt (a course of action, especially an extreme or undesirable one) so as to resolve a difficult situation.
Synonyms : retreat
Example : “the duke was prepared to resort to force if negotiation failed”
10) waivers
Meaning :an act or instance of waiving a right or claim.
Synonyms : remission
Antonyms : approval
Example : “their acquiescence could amount to a waiver”
11) relieve
Meaning : cause (pain, distress, or difficulty) to become less severe or serious.
Synonyms : alleviate
Antonyms : distress
Example : “the drug was used to promote sleep and to relieve pain”
12) verdict
Meaning : a decision on an issue of fact in a civil or criminal case or an inquest.
Synonyms : decision
Antonyms : accusation
Example : “the jury returned a verdict of not guilty”
13) implementation
Meaning : the process of putting a decision or plan into effect; execution.
Synonyms : application
Antonyms : failure
Example : “she was responsible for the implementation of the plan”
14) adopt
Meaning : legally take (another’s child) and bring it up as one’s own.
Synonyms : accept
Antonyms : disagree
Example : “there are many people eager to adopt a baby”
15) prod
Meaning : poke with a finger, foot, or pointed object.
Synonyms : nudge
Antonyms : discourage
Example : “he prodded her in the ribs”
16) stance
Meaning : the way in which someone stands, especially when deliberately adopted (as in cricket, golf, and other sports); a person’s posture.
Synonyms : posture
Example : “she altered her stance, resting all her weight on one leg”
17) protest
Meaning : a statement or action expressing disapproval of or objection to something.
Synonyms : riot
Antonyms : calm
Example : “the British team lodged an official protest”
18) crucial
Meaning : decisive or critical, especially in the success or failure of something.
Synonyms : decisive
Antonyms : optional
Example : “negotiations were at a crucial stage”
19) grabbing
Meaning : grasp or seize suddenly and roughly.
Synonyms : capture
Antonyms : give
Example : “she grabbed him by the shirt collar”
20) enable
Meaning : give (someone) the authority or means to do something; make it possible for.
Synonyms : empower
Antonyms : delay
Example : “the evidence would enable us to arrive at firm conclusions”
21) protest
Meaning : a statement or action expressing disapproval of or objection to something.
Synonyms : challenge
Antonyms : answer
Example : “the British team lodged an official protest”
22) lofty
Meaning : of imposing height.
Synonyms : soaring
Antonyms : beneath
Example : “the elegant square was shaded by lofty palms”
23) citing
Meaning : refer to (a passage, book, or author) as evidence for or justification of an argument or statement, especially in a scholarly work.
Synonyms : allege
Antonyms : conceal
Example : “authors who are highly regarded by their peers tend to be cited”
