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Food Price Inflation in India: Causes and Cures


  • Agrawal, Pradeep

    (Institute of Economic Growth, Delhi)

  • Kumarasamy, Durairaj

    (Institute of Economic Growth, Delhi)


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.

Suggested Citation

  • Agrawal, Pradeep & Kumarasamy, Durairaj, 2014. "Food Price Inflation in India: Causes and Cures," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 49(1), pages 57-84.
  • Handle: RePEc:dse:indecr:0084

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    Cited by:

    1. repec:sae:smppub:v:6:y:2017:i:1:p:59-81 is not listed on IDEAS
    2. Rudrani Bhattacharya & Abhijit Sen Gupta, 2017. "What Role Did Rising Demand Play in Driving Food Prices Up?," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(1), pages 59-81, June.

    More about this item


    Food Demand; Food Supply; Food Inflation; Food Security; Demand Projections; India;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy


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