NMCE - Comments on the Union Budget

Budget Reaction- National Multi Commodity Exchange

  

At the Macro level, the budget is very positive for the Indian Economy. This is mainly due to a strong stress on keeping the deficit in check at 6.9 % down from 7.8 % last year. With positive remark on lowering it further to 5.5% by the next fiscal year will keep the Indian economy drivers confident.

On the other side, the inflationary impact will continue to hit the commodity prices and pockets of the people in general because there has been no step to incentivize the producers to increase the supply of their produce, whereas the demand will keep on increasing because of more purchasing power in the hands of people. To add to this, there has been an increase in the prices of petrol and diesel which will again impact the entire supply chain costs. There would be double whammy. On one side raw materials cost of the farmer would go up and on the other his produce, before it reaches to the consumer the transport cost would go up due to the hike in diesel price. The irrigation is mostly diesel based in the country because supply of electricity to the farmers is negligible.

-Mr. Anil Mishra- CEO, NMCE