El Nino's potential impact on rabi crops overcasts govt's fiscal arithmetic

Food inflation rose to a three and a half year high of 11.51 per cent in July this year, compared to 4.31 per cent in the previous month

At first glance, it may appear that rising food inflation and potential populist measures ahead of the forthcoming elections could disrupt the Centre’s fiscal arithmetic for the current financial year. However, official numbers indicate that the situation is not yet alarming. Nonetheless, the looming threat of El Niño and its potential impact on rabi crops could turn the situation adverse in the latter part of the year.
 

Various measures implemented to control escalating food inflation, such as selling tomatoes and onions at subsidised rates, have not significantly increased government expenditure.
 

However, the reduction in prices of liquefied petroleum gas cylinders