Wheat farmers in India have incurred losses amounting to around Rs 40,000 crore due to the government's intervention to control rising food inflation, as per a report by the Indian Council for Research on International Economic Relations (ICRIER).
The report highlights the negative economic impact of government policies on farmers and suggests revisiting market restrictive measures and compensating farmers for the financial burden placed on them.
In the case of wheat, the report suggests better transparency and communication about government production estimates and a reduction in import duties to control inflation without hurting farmer earnings. Paddy farmers are also expected to face similar losses in the upcoming procurement season.