Disruptive Investor The wholesale food prices in India touched a 10 year high with food inflation coming at This article looks back into the spiraling food inflation inits implications, reasons and solutions.
Food inflation and food price volatility in India: Annual trends show that different commodities have contributed to food inflation in different years and that no single commodity shows uniformly high inflation.
A decomposition exercise shows that eggs, meat, fish, milk, cereals, and vegetables were generally the main contributors to recent food inflation.
The contribution of pulses, except pigeon peas arharand of edible oils remained low. Fruits and vegetables displayed a much higher degree of intrayear volatility, and high-weight commodities in the national consumption basket also showed very high inflation rates, which is a cause for concern.
Results of the econometric analysis show that both supply and demand factors are important. Cereal and edible oil prices appear to be mainly driven by supply-side factors such as production, wage rates, and minimum support prices. For pulses, the effects of supply- and demand-side factors appear almost equal.
The prices of eggs, meat, fish, milk, and fruits and vegetables appear to be driven mainly by demand-side factors. Related Publications Gender justice and food security in India: A review There is ample evidence to suggest a strong correlation between gender inequality and food and nutrition insecurity, yet the policy discourse around food and nutrition security in India has largely been gender-blind.
This paper, based on a review of ex… Read More titled Gender justice and food security in India: Making pulses affordable again: Policy options from the farm to retail in India Rising prices and declining consumption of pulses cause concern in terms of both nutrition and food inflation in India.
This paper outlines policy strategies to increase the availability of pulses at affordable prices in India and also points out limit….24 rows · In the long-term, the India Food Inflation is projected to trend around percent in , according to our econometric models.
The Consumer Food Price Index accounts for percent of the total consumer price index. Official data on Wednesday showed that retail — or consumer price indexed (CPI) — inflation in India during June fell to per cent from a higher rate of per cent in May. The retail inflation was dragged lower by a sharp fall in prices of food items like pulses, vegetables and other perishables.
India is experiencing high rate of economic growth in the last two decades but the growth has been coupled with high rate of food price inflation. Inflation in general and food price inflation in particular has been a persistent problem in India over the past few years.
Price stability is crucial for sustainable growth as persistent inflation implies higher demand relative to supply. Therefore, we analyse here demand and supply of food in.
India uses the Wholesale Price Index (WPI) to calculate and then decide the inflation rate in the economy.
Most developed countries use the Consumer Price Index (CPI) to calculate inflation. of food price inﬂ ation over a long period of time is undesirable.
Also, it has necessitated aggressive monetary tightening by the central bank even at the risk of a moderation in economic growth.