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Food Price Inflation in India: Causes and Cures

Pradeep Agrawal and Durairaj Kumarasamy ()
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Pradeep Agrawal: Institute of Economic Growth, Delhi

Indian Economic Review, 2014, vol. 49, issue 1, 57-84

Abstract: This paper analyses demand and supply of food in India to understand the domestic policies needed to control food inflation. We estimate food demand in India by categories (cereals, vegetables, fruits, etc.) and project it until 2025. We find that food inflation has been caused mainly by changing patterns in food demand. This is compounded by structural problems, which inhibit adequate supply side responses to these changing consumption patterns, and by the failure of the government to tackle them. We then discuss the supply side responses needed to tackle food inflation, given that agricultural land can hardly be increased.

Keywords: Food Demand; Food Supply; Food Inflation; Food Security; Demand Projections; India (search for similar items in EconPapers)
JEL-codes: E31 O13 Q11 Q15 Q18 (search for similar items in EconPapers)
Date: 2014
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