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RBI policy this week: As food prices drop, pressure grows for interest rate cuts

Calls for RBI to cut its policy rate beyond 25 bp that markets priced in for Wednesday's meeting

Reuters  |  Latur 

A nearly 60 per cent drop in prices of a popular type of lentil is hurting Indian farmer Sanjay Somwanshi, but it is doing wonders for the country's inflation - and piling pressure on a stubborn central bank to cut interest rates more aggressively. Standing next to sacks of "pigeon peas" in Latur, an agricultural hub about eight hours from Mumbai by train, Somwanshi cuts a narrow slit in one and scoops out a handful of the red-coloured lentils. He harvested them in February but delayed selling them because prices were too low. "For the last six months I ...

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First Published: Mon, July 31 2017. 09:15 IST