Poll shadow over onions
7 months, 2 weeks ago

Poll shadow over onions

Hindustan Times  

The Union government has removed the six-month-long ban on onion exports, albeit with the qualification of a minimum export price. Food items account for 39% of India’s food basket and have been the biggest factor for inflation not meeting the RBI’s target of 4% in the recent past. Because most of India’s food inflation problem is related to climate-inflicted supply shocks rather than demand-driven rallies, the government has been intervening in food markets to manage inflation pressures. Free market dogmatists often criticise it on the ideological ground of the government undermining free trade. Unless farmers as a class, across crops and regions, accept reforms and also demand a fair deal from the government, things won’t change.

India Farmers Free Trade Onions Food  onion  problem  onions  food  shadow  prices  political  regions  farmers  free  trade  inflation  poll

History of this topic

Tomatoes, Onions, Gold Driving CPI Inflation Says CEA
1 month ago

Tomatoes, Onions, Gold Driving CPI Inflation Says CEA

Deccan Chronicle  

Mumbai: Chief Economic Adviser V Anantha Nageswaran on Tuesday said that the recent rise in Consumer Price Index -based inflation is primarily driven by a select few commodities. Nageswaran explained that excluding tomatoes, onions, potatoes, and gold and silver from the CPI calculation reveals a much lower headline inflation rate of just 4.2 per cent for October. While these items …

Spectre of food inflation haunts the economy again
1 month, 1 week ago

Spectre of food inflation haunts the economy again

New Indian Express  

It appears that the common man will have to further tighten his consumption belt. Government data released Tuesday showed vegetable prices were the main culprit, as they shot up over 42 per cent in October from a year ago—higher than the 36 per cent rise in September. Coupled with oil prices rising 9.51 per cent, fruits, cereals and pulses, food …

India’s retail inflation surges to 6.2% in October
1 month, 1 week ago

India’s retail inflation surges to 6.2% in October

The Hindu  

A 10.9% spike in food prices lifted India’s retail inflation to a 14-month high of 6.2% in October, from 5.5% in September, with prices of vegetables and edible oils escalating at a sharp pace not seen in recent years. October’s price rise pace marked a breach of the Reserve Bank of India’s upper tolerance limit for inflation, with rural India …

Food prices can’t be overlooked for inflation targeting, says Das
4 months, 2 weeks ago

Food prices can’t be overlooked for inflation targeting, says Das

New Indian Express  

Das clarified that while the Monetary Policy Committee might overlook elevated food inflation if it is deemed temporary, the current situation of sustained high food inflation requires the committee to take it seriously. The Economic Survey, released prior to the Budget, advocated for a revision of the central bank’s inflation targeting framework by excluding food inflation. It argued that India’s …

Flare-up in vegetable prices stalls overall disinflationary trend: RBI officials
5 months ago

Flare-up in vegetable prices stalls overall disinflationary trend: RBI officials

The Hindu  

Consumer price inflation rose in June after three consecutive months of moderation due to a spike in vegetable prices halting a disinflationary trend underway in the economy, Reserve Bank of India officials led by deputy governor Michael D. Patra wrote in the July edition of RBI Bulletin. Headline inflation Headline inflation measured by on year changes in the all-India consumer …

Food concerns in inflation data
10 months, 1 week ago

Food concerns in inflation data

Hindustan Times  

Retail inflation, as measured by Consumer Price Index, stood at 5.1% in January 2024, according to data released by the National Statistical Office on Monday. Some analysts have noted that high-frequency food price data for February suggests that the headline inflation might not change much this month either. However, the lower-than-expected relief in food inflation has only added more weight …

CPI inflation likely at 4.8% in Oct: Poll
1 year, 1 month ago

CPI inflation likely at 4.8% in Oct: Poll

Live Mint  

New Delhi: India’s retail inflation likely cooled to 4.8% in October from 5% in September as food inflation continued to ease, according to a Mint poll of 17 economists. View Full Image Respondents predicted inflation based on the consumer price index in the range of 4.5-5.1% in October, with only one economist expecting inflation to cross 5%. “We see a …

Why inflation will keep policymakers guessing, impact festive spending
1 year, 3 months ago

Why inflation will keep policymakers guessing, impact festive spending

India Today  

Offering some relief to consumers, inflation cooled down in August due to easing of food prices, compared to the 15-month high in July. Consumer Price Index -based inflation softened to 6.8 per cent in August, after surging to 7.4 per cent the previous month. Inflation in all commonly constructed non-food CPI categories remained low and unchanged from July: non-food CPI …

Runaway prices cast a long political shadow
1 year, 4 months ago

Runaway prices cast a long political shadow

Hindustan Times  

An August 17 report in this newspaper said the government might extend the provision of free food grains under the National Food Security Act and continue to give ₹200 per LPG cylinder to beneficiaries of the Ujjwala scheme. Another report on August 18 noted that the central government is likely to assume a more and more proactive role in managing …

High food prices may be the new normal
1 year, 4 months ago

High food prices may be the new normal

Hindustan Times  

A vegetable price shock has sent India’s benchmark inflation rate to a 15-month high of 7.4% in July. The jump in headline inflation came despite a moderation in core inflation, which measures the non-food non-fuel part of the Consumer Price Index basket. In the textbook world of inflation targeting, high inflation is taken as a sign of an overheating economy, …

India should brace for a food inflation spike
1 year, 4 months ago

India should brace for a food inflation spike

Hindustan Times  

Most analysts expect India’s benchmark inflation measure, as measured by the Consumer Price Index to breach the 6% threshold in July. In July, tomatoes have played a big role, continuing to sell at very high prices, with signs that onions could generate additional tailwinds for food inflation. While price pressures from perishables such as onions and tomatoes will eventually die …

Food prices to stay sticky, may keep inflation around 7% in Q3 too
2 years, 2 months ago

Food prices to stay sticky, may keep inflation around 7% in Q3 too

The Hindu  

The poor are facing a higher inflation burden due to the surge in food prices, especially for items like cereals and vegetables, which are unlikely to cool off soon owing to unseasonal rainfall and lower Kharif crop sowing, according to economists. “Essential items, such as food and fuel, occupy a greater share in the consumption basket of lower-income classes… Across …

The cost of misrepresenting inflation
2 years, 5 months ago

The cost of misrepresenting inflation

The Hindu  

Globally, inflation is now the prime concern of governments, even as there is a speculation that a recession may not be far behind. Contrary to the belief that the rise in inflation in India is due to higher international prices, we found that for the commodity groups ‘fuel and light’ and ‘fats and oils’, chosen as proxies for the price …

What’s to be done to tackle inflation? Focus on agricultural productivity
2 years, 6 months ago

What’s to be done to tackle inflation? Focus on agricultural productivity

The Hindu  

Published : May 30, 2022 06:00 IST Inflation has edged itself into the centre of the discussion on the state of the economy, not only in India but internationally. For the month of April, annual inflation in India was over 7 per cent but food inflation, or the rise in the price of food, was higher at over 8 per …

Why inflation stands in the way of India’s growth recovery
4 years ago

Why inflation stands in the way of India’s growth recovery

Live Mint  

The promise of a quick vaccine, India’s higher-than-expected gross domestic product numbers for the Sep-ended quarter, and a booming stock market suggest that the risks to growth may be declining. In a rare comment just days ahead of the MPC meet, Mridul Saggar, an MPC member and a senior RBI official said that high inflation leaves little room for the …

High food prices at heart of India’s inflation problem
4 years, 1 month ago

High food prices at heart of India’s inflation problem

Live Mint  

India’s Consumer Price Inflation has been above the RBI-mandated 2-6% for 8 out of the 9 previous prints. Consumer Price Inflation is estimated, first of all, by constructing a representative ‘basket’ of goods and services. However, India’s inflation has historically been driven by high food prices. Conventional theory states that higher wage growth pushes inflation and EMs experience higher wage …

Discover Related