Agricultural output growth has recovered after the back-to-back drought of 2014 and 2015 but it hasn’t increased to the extent that the market is flooded with excess production. And this is the problem of plenty, which seems to have driven down the prices of most agricultural commodities. This is the second time agricultural commodities have seen a sharp decline in prices in the life of this government. The overall growth rate of agricultural output between 2014 and 2017 is 1.86% per annum, almost half the rate of growth of agricultural output during the preceding decade of 2004-2013. A good example is wheat, which has seen prices decline by 1.2% despite wheat production declining by 1.4 million tonnes this year.

Source: Mint April 23, 2018 18:11 UTC