Economy, India

No direct link between demonetisation and agricultural prices: Radha Mohan Singh

Central government on Friday said that there is no “direct link” between demonetisation and the prices of agricultural commodities.

“There is no direct link between demonetisation and the prices of agricultural commodities,” Agriculture Minister Radha Mohan Singh said in Rajya Sabha.

He added that the government had taken enough steps to provide relief to the farmers after demonetisation.

He further said that the selling prices are governed by market forces of demand and supply, quality of produce and seasonality.

The minister said the Centre has asked the state governments to cover more and more farmers under the Pradhan Mantri Fasal Bima Yojna (PMFBY) from the current level of 30 per cent.

“We want to take it to 40 to 50 per cent of farmers in the country and we should together with state governments work towards achieving the target and popularise the PMFBY to help cover all farmers and give them protection of their crops,” he said in the House.

However, official data released this week has shown that wholesale inflation soared to 6.55 per cent in February from 5.25 per cent in January, while retail inflation rose to 3.65 per cent from 3.17 in January.

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