My View on "Food Inflation: A Stubborn Sore in the Indian Econ...":
For taming inflation or plainly to retain prices within acceptable levels, long term planning, regulatory support and coordinated efforts by government and stakeholders in the market and better consumer-awareness may have to get more attention. Onion prices are one indicator to show how those who gain a control over stocks of goods that have a longer shelf-life manipulate prices. Government may not need an economist to tell that the position of demand and supply has an impact on prices. Procurement by processing industry and wholesalers who have ongoing responsibility to maintain supplies to retail outlets like departmental stores and supply-chains, purchase by affluent pockets/states within the country which can afford to pay higher prices and export-commitments affect prices of vegetables, meat and eggs. A long term solution may have to look at improving/increasing production by ensuring remunerative farm-gate prices, estimating in advance the state-wise requirements for consumption, processing and export and regulating inter-state movements taking into account the potential for increasing local production.
- M.G.Warrier
