'Inflationary pressures attract restrictions on agri exports'
The inflationary pressure, which has been a constant cause of worry for the government, is expected to attract restrictions on agricultural exports, CMIE said in its monthly review.
By PTI |
MUMBAI: The inflationary pressure, which has been a constant cause of worry for the government, is expected to attract restrictions on agricultural exports, Centre for Monitoring Indian Economy (CMIE) said in its monthly review.
The high international prices and the consequent increase in exports has caused inflation to surge (hovering over 7 per cent) CMIE said, adding that this prompted the government to clamp down on exports of some agri commodities in order the improve availability and cool down prices.
Demand for agri commodities remained strong during FY'08 as reflected in the surging price in the domestic and global markets. This helped farmers garner higher returns for their goods, CMIE report stated.
Demand supply mismatch in the international market, pushed up prices of essential commodities like rice and cotton. In FY'08, cotton price shot up by 14 per cent depending on quality. The high global price made export more remunerative.
Non-basmati exports shot up by 55 per cent during April -December 2007 to four million tones. This was a very sharp rise since during the entire FY'07, 3.7 million tonnes of non-basmati rice was exported. Cotton exports also increased to 0.96 million tones in Arpil-December 2007 from 0.56 million tonnes in the same period of 2007.
India's agricultural output is estimated to have moved up by 2.8 per cent during FY'08 after rising by 4 per cent in the previous year, CMIE report said.
The slowdown was on account of the modest increase of 1.2 per cent in foodgrain production. Non-foodgrain output surge by 4.9 per cent.
The high international prices and the consequent increase in exports has caused inflation to surge (hovering over 7 per cent) CMIE said, adding that this prompted the government to clamp down on exports of some agri commodities in order the improve availability and cool down prices.
Demand for agri commodities remained strong during FY'08 as reflected in the surging price in the domestic and global markets. This helped farmers garner higher returns for their goods, CMIE report stated.
Demand supply mismatch in the international market, pushed up prices of essential commodities like rice and cotton. In FY'08, cotton price shot up by 14 per cent depending on quality. The high global price made export more remunerative.
Non-basmati exports shot up by 55 per cent during April -December 2007 to four million tones. This was a very sharp rise since during the entire FY'07, 3.7 million tonnes of non-basmati rice was exported. Cotton exports also increased to 0.96 million tones in Arpil-December 2007 from 0.56 million tonnes in the same period of 2007.
India's agricultural output is estimated to have moved up by 2.8 per cent during FY'08 after rising by 4 per cent in the previous year, CMIE report said.
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The slowdown was on account of the modest increase of 1.2 per cent in foodgrain production. Non-foodgrain output surge by 4.9 per cent.
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