Terms of trade go against farmers in FY22 after a gap of two years

Simply put, farmers are paying a higher price for their agri inputs and for services such as health and education, as compared to the price they receive on the sale of their produce

Though the farm sector is projected to grow at a robust 3.9 per cent in FY22 as per the first advance estimates of national income, it is of little consequence to Indian farmers. This is because the terms of trade in agriculture have started going against them again, after a gap of two years, due to higher inflation in the non-agriculture part of the economy.

The phrase 'terms of trade' for agriculture in layman’s language broadly refers to the gap between the price paid for inputs used in growing agricultural crops, and the prices received from the sale of those