Dollar will rebound

This refers to ‘Rupee in a sweet spot as dollar loses lustre’ (April 20). While the rise of the rupee against the dollar is predominantly based on certain weaknesses within the US, factors such as India’s increasing merchandise trade deficit, decision of OPEC+ to go for reduction in oil production etc., do not augur well on trade front. As such, the demand for the dollar is bound to increase and put pressure on the rupee.

Though the annual inflation rate in the US has slowed, it is still hovering at about 5 per cent which is quite high by US standards. This would force the Fed to hike rates for some more time. On the domestic front, though food inflation is under control, the likely impact of El Nino leading to crop loss and a rise in food inflation is still hanging. Overall, domestic factors should set the trend on movement of rupee vis-à-vis the dollar in the days to come.

Srinivasan Velamur

Chennai

Giving FPOs a boost

Apropos ‘The FPO route to making farming worthwhile’ (April 20), the role of farmer producer organisations is crucial in terms of enhancing marketing knowledge, technology, energy and water conservation, logistics and supply-chain capabilities.

However, the growth of FPOs covering the large extent of farmers is still at a nascent stage, due to a variety of issues including political interferences. Convergence of self-help groups into FPOs is a novel idea, not only to address the problem of minimum average size of 750 members, but also in improving the bargaining power of the members.

Sitaram Popuri

Bengaluru

What ails MFIs

This refers to ‘It’s a myth that MFIs empower women’ (April 20). The article paints a gloomy picture on the financial assistance being extended by MFIs to women folk of rural and semi-urban areas. In fact, the concept of financing the women sector emanated from the self-help group (SHG) concept formed by NABARD in 1992 and replicated to all PSBs for implementation.

Unfortunately, local politics over the years have played spoilsport. The State administration would take over the liability for write-off, as part of social measures. SHGs have, therefore, lost their glory and same has been the case with MFIs too. Political forces must be kept off the lending process of MFIs.

RV Baskaran

Chennai

Conserving water

This is with reference to ‘Water levels in reservoirs are 5% lower than in April 2022’ (April 20). This summer is going to be harsh, and there will be water scarcity. Nevertheless, this is the right time to spread awareness about saving rainwater and water harvesting. The government should take necessary steps to speed up digging of wells, and maintenance of ponds, dams, etc. Although strict measures such as fines for wasting water are welcome, raising awareness about saving water is a more powerful way to conserve water.

Veena Shenoy

Thane

Summer woes

Most ponds, river sources, open wells and deep wells have dried up, even as there are two more months of summer left. The absence of pre-monsoon showers this time round, which is a prerequisite for most kharif and plantation crops, is worrisome. The Central Government must step in and save the farm sector from water scarcity.

Rajiv Magal

Halekere Village, Karnataka