Clamour for rate cut

This refers to the article ‘New RBI Governor Sanjay Malhotra chairs his first MPC meeting; may cut repo rate’ (January 6).The newly-appointed RBI Governor Sanjay Malhotra, chairing his first Monetary Policy Committee (MPC) meeting starting Wednesday, may possibly have his ‘task cut’ out.

Will he oblige the Centre with a 25 bps rate cut?

However, it may be pertinent to recall that the RBI had last cut the repo rate by 40 bps in May, 2020, and still remaining unchanged at 6.5 per cent since February 2023, under for erm Governor Shaktikanta Das.

But, in all fairness, RBI must be given a ‘free hand’ to deal with the current situation.

Kumar Gupt

Panchkula (Haryana)

Apropos ‘Policy rate: Cut or not to cut’ (February 6). Declining inflation, fiscal consolidation and RBI’s open market operations to stabilise rupee set the stage for a rate cut.

The MPC has held rates for 11 consecutive meetings, with an eye on inflation.

A 25 bps cut will not have a drastic impact on the economy. Though RBI’s caution is understandable the time is ripe for a rate cut.

NR Nagarajan

Sivakasi

Patchy progress

This refers to the Edit “Building blocks” (February 6). Overall, while the shared data indicates that the government’s increased financial support in education is improving the learning outcome at the school level, it also invites two observations. It is dismaying that the allotted funds remained underutilised. This gap between good intentions and actual action should be bridged. An effective education chain requires all its links — primary. middle and higher secondary levels — to be equally strong because the strength of a chain is determined by its weakest link.

The disappointing student performance at the middle school level could offset the gains at the lower levels thus transferring the problem from the roots to the stem.

YG Chouksey

Pune

Farm focus

This refers to ‘Agri sector sees Budget providing impetus to rural economy’ (February 6). the FM in her budget speech touched Agriculture as the first point of focus, announced enhanced ceiling of KCC from ₹3 lakh to ₹5 lakh, increase in credit ceiling for Self Help Group, focus on 100 developing agri districts, focus on Atmanirbhata in Pulses would no doubt, in the long run help in pushing rural prosperity. The extension of Jal Jeevan Mission 2028 would ensure water supply to rural India.

However, the non fund allocation under PM Dhan Dhanya Krishi Yojana covering 100 districts with low productivity and moderate crop intensity is quite surprising and is not in sync with the announcement made in the budget.

The setting up of a new urea plant of 1.27 million tonnes of annual capacity at Namrup in Assam indicates that there won’t be any reduction in the fertilizer subsidy which is burgeoning year by year and the Centre has no intention of enthusing the farmers in switching over to organic farming.

RV Baskaran

Chennai

Published on February 6, 2025