A Curious Case
A sharp drop in food inflation is hurting food growers as the downward spiral keeps market prices well below the MSP.
During the last phase of the UPA II regime, a major theme in the food economy was retail food inflation exceeding 10 per cent per annum. Even after the formation of the Modi government, retail prices of pulses continued to be high and packaged arhar touched Rs 150 180 per kg in Delhi in October 2015. Moong, masoor, urad and rajma were also priced above Rs 100 per kg at the time. It was feared that food inflation was here to stay.
And then, over the next three years, the unthinkable happened, and food inflation came down, primarily due to
