Hindi English Translation || Editorial || ​Good news, and bad: On the economy

​Good news, and bad: On the economy

As retail inflation ebbs (घटाव, कम होना, घट जाना), Government must focus on improving farmer income

India’s March retail (खुदरा बिक्री) inflation was down to a near six-year low of 3.34%, making it almost certain that the Reserve Bank of India (RBI) will cut its banks’ lending rate further over the next few Monetary Policy Committee meetings. The repo rate has already been cut twice in a row, by 25 basis points (bps) each, in February and April, bringing it down from 6.5% to 6%, signalling the emphasis on growth, amid (के बीच में) global trade uncertainties, as the RBI’s concern over non-core inflation eases. Vegetable prices have plummeted (तेजी से गिरना, नीचे आ जाना) over the past four months from the highs of October 2024, when food inflation peaked (शिखर, सर्वोच्च बिंदु) at 10.87%, the highest since November 2013. Food inflation in March fell to 2.69% aided by a contraction in the prices of vegetables (-7.04%), eggs (-3.16%) and pulses (-2.73%). The repo rate reduction has already begun translating into lower interest on bank loans. In normal times, this would translate into greater capital flows into businesses, thereby raising jobs, incomes and consumption. But it comes at a time of dampening (मंद करना, कम करना) investor confidence: U.S.-led tariff uncertainty is forcing exporters to scramble (To move quickly or awkwardly; to compete or struggle) for newer markets, amid a concern over near-term demand contraction, as America has been India’s largest buyer of merchandise goods since fiscal year 2022. Easing inflation could raise domestic consumption and India’s sluggish (सुस्त, धीमा) industrial production.

What must concern policymakers more should be the steep fall in food prices, as this means lower farmer incomes, directly impacting rural consumption demand. Last December, the government procured eight tonnes of tomatoes in Kurnool, Andhra Pradesh, as prices in the local market plummeted to ₹1 a kilogram. In February this year, in Maharashtra and Madhya Pradesh, an 80% fall in tomato prices forced farmers to dump produce or use them as cattle feed. A 2022 study by the Ministry of Food Processing pegged India’s post-harvest loss at a whopping (To strike forcefully) ₹1.52 trillion annually, ranging between 6% to 15% of produce depending on the crop and region. This is due to widespread shortages in cold storage facilities and temperature-controlled transport for perishables (नष्ट होनेवाला, जल्दी खराब होने वाला), and market inaccessibility (पहुँच से बाहर होना, दुर्गमता) for farmers. A significant 86% of Indian farmers make a living from less than two hectares of land. A 2021-22 NABARD survey pegged (स्थिर रखना, निर्धारित) average monthly agricultural household income at ₹13,661. A more comprehensive NSSO 2019 survey estimates this to be ₹10,218. These figures are lower than those in other emerging economies such as China, Mexico and Brazil for the corresponding years. While rural consumption has been rising since the COVID-19 pandemic years, monthly per capita consumption expenditure for rural areas in fiscal 2024 was ₹4,122, while in urban areas, it was ₹6,996, indicating the significant gap that must be viewed as an opportunity, at a time when export growth is expected to be sluggish.

Courtesy: The Hindu

Important Word List With Meaning

1.Ebb (Verb)

Hindi Meaning - घटाव, कम होना, घट जाना
English Meaning - To decline or recede gradually.

2.Retail (Noun)

Hindi Meaning - खुदरा बिक्री
English Meaning - The sale of goods in small quantities to consumers.

3.Amid (Preposition)

Hindi Meaning - के बीच में
English Meaning - In the middle of or surrounded by.

4.Plummet (Verb)

Hindi Meaning - तेजी से गिरना, नीचे आ जाना
English Meaning - To fall or drop suddenly and steeply.

5.Peak (Noun)

Hindi Meaning - शिखर, सर्वोच्च बिंदु
English Meaning - The highest point or level.

6.Dampen (Verb)

Hindi Meaning - मंद करना, कम करना
English Meaning - To reduce the intensity or enthusiasm.

7.Sluggish (Adjective)

Hindi Meaning - सुस्त, धीमा
English Meaning - Lacking energy or alertness; slow-moving.

8.Perishable (Adjective)

Hindi Meaning - नष्ट होनेवाला, जल्दी खराब होने वाला
English Meaning - Likely to decay or go bad quickly.

9.Pegged (Noun)

Hindi Meaning - स्थिर रखना, निर्धारित
English Meaning - Fixed or maintained at a certain level.

10.Inaccessibility (Noun)

Hindi Meaning - पहुँच से बाहर होना, दुर्गमता
English Meaning - The state of being difficult or impossible to reach.

11.Scramble (Verb)

English Meaning - To move quickly or awkwardly; to compete or struggle.

12.Whop (Verb)

English Meaning - To strike forcefully.