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

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