Reaction of authorities to food price shocks and fuel price shocks: A case study of India

Abstract

Food Inflation in India has persistently stayed very high over the last decade. While the government has intervened heavily in the markets for cereals, pulses and edible oils, the critical issue of large fluctuations in fruits and vegetables prices continues to plague the citizens of the country. In our study, we have filtered culprit vegetables and fruits that contribute maximum number of times to the food price shocks. We have also extensively studied the production of onions & ginger in India and consolidated policy measures taken by the government in order to curb erratic price movements