FY22 agri inflation at six-year high, but did farmers reap full benefit?

Though Indian farmers may have gained from higher than usual inflation in crop prices, they have also had to pay more for their inputs and other items of consumption and service

The latest Gross Value Added (GVA) numbers for agriculture and allied activities released by the Ministry of Statistics and Programme Implementation (MoSPI) for 2021-22 shows that last fiscal, the inflation rate in agriculture and allied activities was the highest in the past six years, that is, since 2015-16. The question, however, is how much of it has actually benefited the farmers, because the sharp spike in inflation in non-farm activities impacted the terms of trade for the sector.

In layman's language, terms of trade for agriculture broadly means the price paid for buying inputs for raising agricultural crops versus the