The food crisis and India

The World Bank has joined the chorus warning the world of an impending food crisis with damaging food price inflation. In its late-August edition of its Food Price Watch the Bank reported that global prices for food as reflected by its Food Price Index rose 10 per cent in July 2012 alone. The prices of staples such as corn and soya bean were at an all-time high that month, with the increase in corn prices amounting to 25 per cent and that in soya bean to 17 per cent over a single month. Earlier, the FAO had reported that its Food Price Index (FPI) rose by 6 per cent in July 2012, driven by grain and sugar prices. Cereal prices had risen by 17 per cent in June relative to the previous month, maize prices by close to 23 per cent and wheat prices by around 19 per cent.

Food inflation rises to 8.55 per cent

Food inflation shot up to 8.55 per cent for the week ended May 14, the highest level in four weeks, as prices of fruits, cereals and protein-based items escalated.Food inflation, as measured by the Wholesale Price Index (WPI), was on a declining trajectory for the previous three weeks. The figure for the seven-day period under review was 1.08 percentage points higher than the 7.47 per cent inflation rate recorded in the previous week.

Growth could be 8 per cent during FY 12: FM

Finance Minister Pranab Mukherjee on Thursday projected India's economic growth at 8 per cent for the current fiscal, lower than the budgetary estimate of 9 per cent, due to measures taken to rein in high inflation."If oil prices continue to rise, it would be difficult to achieve higher GDP. GDP may come down to 8 per cent from (the projected) 9 per cent," Mukherjee told reporters on the sidelines of ADB annual meeting in Hanoi.The government's (India) primary concern now is to manage inflation while sustaining high growth rate.Hardening of global commodity prices, particularly oil prices has accelerated inflation, he said adding "our projection is 7.5-8 per cent inflation during the year".

Food inflation up to 8.76%; RBI likely to hike rates further

Food inflation went up to 8.76 per cent for the week ended 16th April, raising fears of another hike in the key policy rates by the Reserve Bank in its annual policy to be announced next week.Amid concerns of rising inflation, RBI Governor D Subbarao is expected to hold consultations with Finance Ministry officials before firming up proposals for the annual credit policy to be announced on 3^rd May.