India’s food inflation is expected to ease by Q4 of this fiscal (FY25) on better kharif arrivals and rising prospects of a good rabi season, highlighted the Reserve Bank of India’s latest report.
The RBI-led rate setting panel, Monetary Policy Committee, in the minutes of October meet, has highlighted that the sowing of key kharif crops are higher than last year and the long-period average.
“Sufficient buffer stocks for cereals are available for ensuring food security. Adequate reservoir levels, the likelihood of a good winter and favorable soil moisture conditions augur well for the ensuing rabi season, though adverse weather events remain a risk,” it added.
Firms polled in the Reserve Bank enterprise surveys expect input cost pressures to ease; however, the very recent upturn in key commodity prices, especially metals and crude oil needs to be closely monitored.