Where has India's record wheat and rice output gone?
We need an explanation for persistent food price volatility despite a flurry of government interventions
Tomato consumer price index (CPI) inflation that was 201.5% in July, year-on-year, is set to ease. New supplies from farms have reduced prices that, in the absence of government procurement, have crashed to ₹5 per kg in Maharashtra. But food inflation won’t ease anytime soon. That’s because inflation in cereal prices, especially wheat and rice, is still high. Cereals contributed nearly as much to August CPI inflation as tomatoes (15.49% versus 15.51%). Why the government has failed to control cereal inflation is a bit of a mystery.