NEW DELHI: Union Finance Minister Nirmala Sitharaman on Monday flagged concerns over possible headwinds in the domestic consumption this year, due to the impact of the El Niño which is likely to adversely affect the agricultural income and productivity.
Underscoring the risks arising due to the El Niño effect this year , the Finance Minister said “Because of the El Niño, I think we are preparing for not so good a consumption,” emphasizing that the stress on rural incomes remains a key concern.
While assuring that India does have a buffer of food stocks for a year, she added , “For farmers, it will have an impact because this year this income will be stressed up.”
She further flagged that the shortage of fertilisers due to the current geopolitical situation has made the situation even more challenging. She highlighted how several countries have withdrawn themselves from the fertilisers’ global supply chain to ensure better stocking for their respective domestic market making the availability even more skewed.
“Some countries which do not want to get into the market, which are traditional suppliers, are no longer suppliers. They want to stock it up for themselves. And there was fear that we are going to have short supply because those who have gone out are depleting the food, “ added Sitharaman.
Reflecting on the budget planning process, she explained the necessity of securing supplies for the upcoming seasons, noting the volatility of global markets.