Market veteran Rakesh Jhunjhunwala says the government’s aim should be to raise productivity to boost farmers’ income. The government is spending somewhere close to Rs 70-80K crore on fertilizer subsidy is a total waste.
He further added that the money could be utilized to buy seeds, irrigations facilities, educating the farmer, and on any other method of raising the productivity.
Commenting on the MSP or the minimum support price, Jhunjhunwala said that farmers are getting lower amount compared to the actual price. Unless, the government doesn’t have the political will to do what is needed, doubling of the income is just a dream.
Speaking about the economy, the big bull says he doesn’t expect inflation to go any higher from current levels. The Reserve Bank of India is adamant of not increasing interest rates.
The biggest fear of India’s central bank is rising inflation but it doesn’t look like that we are going to see higher inflation unless demand picks up, says the big bull.
Industrial capacity is vastly underutilized and there is no pricing power to the industry, he said.