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GDP advance estimates: Farm growth likely to remain subdued at 2.8% in FY20

Food inflation may increase; farmer income to see reversal after 4-year fall

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A pick-up in farmer income could have a cascading impact on the rural economy, though agriculture is becoming a smaller part of India’s overall rural incomes

Sanjeeb Mukherjee New Delhi
Growth in agriculture and allied activities is expected to be a subdued 2.8 per cent in 2019-20 but farmers’ woes are likely to lessen a bit, according to advance estimates from the statistics office. These activities are estimated as likely to rise by 9.8 per cent at current prices, indicating food inflation (used by many as a proxy for farmers’ income) of seven per cent, the highest since 2014-15.

However, not all agree with this. Broadly, they say, the difference between gross value added at constant and current prices gives a fair idea of farmer income but it would be