As 2024 unfolds, the agricultural landscape remains at the forefront of economic concerns in India. The preceding year witnessed significant restrictions on the import and export of various agricultural commodities as the nation grappled with surging inflation and unanticipated weather patterns. Now, as we step into the new year, experts are being careful about things that could affect how much food is available and how much people want.
There are a few reasons for this caution.
Firstly, the world's biggest democracy is set to witness its next general election this year. The result could lead to changes in how the government deals with agriculture issues. Some of the global developments, especially large-scale conflicts like the Russia-Ukraine war in Europe and the Israel-Hamas war in West Asia, might have an impact on the global trade of food.
Another thing to keep an eye on is food stock available with the government and monsoon (rainy season) outlook in this year. These are important because they affect how much food availability and their prices in the markets.
To get a better understanding of what to expect in 2024, CNBC-TV18 spoke to experts like Sumit Gupta, CEO of Mcdonald Pelz Global Commodities; Ajay Goyal, Director of Shivaji Flour Mills; and Sharmila Jain Oswal, founder of the organic food and millet brand, Gudmom.
Sumit Gupta said no government wins elections while fighting inflation. Food will always be a priority compared to fuel. The inflationary concerns have not eased yet and India has exhausted much of its surplus food stock.
Ajay Goyal explained that the government is in charge of the wheat market, so it's not really a free market. When businesses know that there's not much supply, they might try to guess what will happen and make decisions based on that. If there's not a lot of crop this year too, the government might reduce the tax on imported wheat.
Also Read | IMD forecast: More than usual rain likely from January to March, no adverse impact expected on wheat crop
(Edited by : Sangam Singh)
First Published: Jan 2, 2024 5:55 PM IST
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