Will the rural economy make all the difference?The monsoon has started very well in Kerala. Its effect in so many parts of Tamil Nadu and even parts of Karnataka is always very good. Similarly, the fairly good rains in the Tanjore district last year has been the main reason for the revival of economic activities.
The labor employed in agriculture is already back and the prices of vegetables have come down, thanks to the excess of supply. This augurs well for the domestic demand for the products always made available through local channels. The village economy always has its own brands and these brands are totally different from the urban brands. In the small retail shops that I have seen, there is some sales of these brands of cool drinks, tooth powders, oil-based snacks, and so on. People are spending a little bit, and the income comes primarily from the agricultural income in most semi-urban and rural areas. The organic fertilizer and chemical fertilizers are doing brisk business.
The mopeds are being purchased on instalment basis. The motor mechanic is active once again. The barbers are active too. Hundreds of new vendors have started selling vegetables and fruits and a number of other things like spices and the entire range of organic food. Let us hope this trend continues and we see some economic activity once again.