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The price of protein

Subir Gokarn

Macroeconomics and Finance in Emerging Market Economies, 2011, vol. 4, issue 2, 327-335

Abstract: The paper examines micro-level price dynamics of the major dietary sources of protein in India, based on demand-supply fundamentals. As levels of affluence increase, the demand for proteins increases. But some categories show a long-term decline in availability, others show volatile growth due to structural imbalance between demand and supply, raising the prospect of price surges. Persistent price increases in commodities for which there are no effective substitutes raise wages and the potential rate of inflation over a period of time, warranting a monetary tightening. To the extent diets are affected human resources are weakened. Improving the agricultural supply response is urgent.

Date: 2011
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DOI: 10.1080/17520843.2011.593908

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