Food Price Volatility in India – Drivers, Impact and Policy Response

Ramadas, Sendhil and Palanisamy, Ramasundaram and Kuruvila, Anil and Chandrasekaran, Sundaramoorthy and Singh, Randhir and Sharma, Indu (2014): Food Price Volatility in India – Drivers, Impact and Policy Response.

Abstract

Volatility in agricultural commodity prices is a priority policy agenda in the ongoing debate on commodity markets vis-à-vis food inflation. The extent of volatility in food commodities has been examined by comparing different indicators. In comparison to previous two decades, food prices are volatile globally and more in rice and wheat particularly during the decade since 2000. In contrast, the extent of price volatility in absolute and relative terms for India elucidated that rice and wheat are less volatile. Plausible drivers of price volatility have been empirically verified based on the arguments in economic forums besides elaborating its impact on economy. The study also highlights the various existing price stabilisation measures and concludes with a pragmatic approach of policy interventions to encounter the rising food prices.

• Item Type: MPRA Paper
• Language: English
• Keywords: Price volatility, inflation, price stabilisation measures, WPI
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C10 - General; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C53 - Forecasting and Prediction Methods ; Simulation Methods; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C55 - Large Data Sets: Modeling and Analysis

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