NATURE OF THE PRESENT FOOD PRICE INFLATION IN INDIA

Sthanumoorthy R. ()
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Sthanumoorthy R.: Indian Institute of Management Kozhikode

No 38, Working papers from Indian Institute of Management Kozhikode

Abstract: One of the reasons identified for the present inflationary situation in India has been the high food prices. However, the nature of the contribution by this product category to the present price spiral remains vague. This paper reveals that the rising prices of “food products” that come under the “manufactured products” group has been the main factor responsible for high overall and food price inflation in India. Among food products, the blame should fall mainly on oil cakes, edible oils and dairy products for the current food price spiral. Contrary to the popular perception, the primary food articles have not much to do with the rising food prices. Interestingly, compared to the past, the current situation in respect of the prices of primary food articles is not as precarious as perceived.

Pages: 1 page
Date: 2008
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