Abstract:
A major economic challenge facing India in the recent years has been stubbornly high food prices. It began with rising prices of manufactured food products, such as dairy products, sugar and oil cakes from January 2008, followed shortly by primary food articles, namely foodgrains, fruits, vegetables, milk, egg, meat, fish, spices, tea and coffee. The inflationary pressure on food products remained high from January 2008 to July 2010 and again from April 2011 to March. Food articles continue to face upside risk to prices even today. As per the latest figures, the WPI inflation rate of food articles stands pegged at 10.74 per cent in May this year.
