The Truth About Dearer Food ; Global Food Prices Are On a Boil As Biofuels and Freak Weather Play Havoc with the Demand-Supply Equation. Not for the Same Reasons, Food Prices in India Too Are Inching Upwards.

Summary

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Rising food prices across the world are generating a great deal of heat and dust. Some of that high-decibel debate about food versus fuel and end of an era when food prices were declining, has found its way into India as well.

The worst hit here is, of course, the common man, who suddenly finds that his food bill has bloated over the last one year. A quick check at the retail end reveals that wheat flour is up Rs 2 a kg, rice is dearer by at least Rs 32 at Rs 75 a kg, prices of pulses like tuvar dal have risen by Rs 10 a kg, and even edible oils such as mustard oil are more expensive by Rs 21 a litre. Ghee is up by Rs 35 a kg.

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The Truth About Dearer Food ; Global Food Prices Are On a Boil As Biofuels and Freak Weather Play Havoc with the Demand-Supply Equation. Not for the Same Reasons, Food Prices in India Too Are Inching Upwards.

Global cues

Diversion of food for fuel is pushing food prices higherIncreased meat production adds its own stress as 2 kg of grain is needed to produce 1 kg of poultry meatClimate change and global warming may lead to a dip of 20% in grain production by 2080In a country where 80 per cent of India's 1.1 billion population earn less than $2 (Rs 80) a day, soaring food prices is not just a serious economic and social issue, but also a political hot potato. No wonder, everyone from the Prime Minister to the Finance Minister to the central bank governor says that curbing food inflati...

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