ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Food Inflation: Contingent and Structural Factors

Food prices in the immediate future can be controlled only through large imports. Wheat stocks are adequate but rice stocks are not. There will be a fiscal cost because global prices are above domestic prices, but this will not be above 1 per cent of central government expenditure. This may be the best option since food inflation is now threatening to become generalised.
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