Abstract: Abstract The paper examines micro-level price dynamics of the major dietary sources of protein in India, based on demand-supply fundamentals. As levels of affluence increase, the demand for proteins increases. But some categories show a long-term decline in availability, others show volatile growth due to structural imbalance between demand and supply, raising the prospect of price surges. Persistent price increases in commodities for which there are no effective substitutes raise wages and the potential rate of inflation over a period of time, warranting a monetary tightening. To the extent diets are affected human resources are weakened. Improving the agricultural supply response is urgent. Keywords: PricesConsumptionSupply conditions Acknowledgements Based on the Inaugural Address at a Special Conference in honour of Dr Kirit Parikh at IGIDR, Mumbai on 26 October 2010. Assistance provided by Balbir Kaur, Praggya Das, Abhiman Das, Nishita Raje, Muneesh Kapur, Rekha Misra, Deepa S. Raj and Atri Mukherjee is gratefully acknowledged. Data support received from Poonam Munjal of CRISIL is also gratefully acknowledged. This address draws upon the ongoing research project in the Reserve Bank on structural drivers of food inflation in India.
Publication Year: 2011
Publication Date: 2011-09-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 27
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