But when we look at the ratio of changes in input cost over the changes in the output price of agricultural commodities received on the basis of CACP data, it has remained flat, indicating that the gains from MSP increases have not accrued to the farm sector in full measure on account of rising costs of inputs.
We are all sailing in unchartered waters: the current high level of accommodation is unconventional, and we see that financial markets may have a heightened sensitivity to changes in monetary policy. Therefore, now that the major central banks are starting monetary policy normalization, we – policymakers – are extra careful, as we want to avoid destabilizing expectations that could prompt a negative market reaction.