Farm output growth of over 4% is the new normal: Niti Aayog's Chand

A growth of more than 4% in farm output, which now accounts for 18% of the country's economy, is the new normal, sustaining long-term low food inflation, Niti Aayog member Ramesh Chand said in an interview.

- Gireesh Chandra Prasad & Vijay C. Roy

Farm output is expected to have grown at 4.6% in fiscal year 2025 that ended on 31 March, up from 2.7% in FY24.

Food inflation, which cooled to 3.75% in February from 5.95% in January, may stay below 4%, offering relief to consumers, Chand said.

Chand also said that going by India's farm output, price of commodities and trade pattern with the US, there is some scope for India to reduce tariffs on some farm products imported from the US, including apple. That could be part of a bilateral trade deal, said Chand.

The reciprocal tariffs the US administration is implementing imply different tariffs on imports from different countries. It goes against the "most favoured nation" (MFN) principle of the World Trade Organisation that warrants a non-discriminatory approach to tariffs, Chand said.