Agri Business

Farm laws repeal will not impact other reforms: CEA Subramanian

| | | Updated on: Dec 02, 2021
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‘No emotion involved in other areas’

Shishir Sinha

Chief Economic Advisor KV Subramanian is optimistic that the repeal of the three farm laws will not affect the overall reform process.

“We have to recognise that emotion is something that is generally higher in farming, in any democracy... But I don’t think this will have any impact on reforms in other areas, because precisely for that reason, that kind of emotion does not manifest in other areas. So, I don’t think reforms in other areas will get impacted by this,” Subramanian told BusinessLine, in an interview on Thursday . On Wednesday, the Centre notified a legislation to repeal the three agriculture laws against which thousands of farmers have been protesting for over a year now.

Continue monetary policy

Expecting the inflation to be range-bound, the outgoing CEA indirectly advocated continuation of the existing monetary policy.

“The formal sector — which accounts for a significant amount of activity — has not suffered from any hysteresis. Therefore, as demand comes back, they will be ready to respond with greater supply as well, which again, thereby provides actually conditions for the current inflation, being range-bound to sort of continue going forward as well.

“These are all aspects, therefore, that must be kept in mind, together with the fact that the recovery needs to continue, into this remaining part of this year and going forward as well,” he said.

Interview p3

Published on December 03, 2021

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