Key Points
Amid fluctuating food prices in the country, Finance Minister Nirmala Sitharaman after presenting Union Budget for FY25 said that the Prime Minister Narendra Modi-led government has a plan in place for the perishables to curb the food inflation...
There is a scheme for MSME irradiation as well, which will help perishables last longer and reach the market even when it is not production season," said the Finance Minister in an exclusive interaction with ToI...
The hightened focus on supply side comes after the Economic Survey called for re-examining of the existing inflation-targeting framework adopted by the central bank, pitching for the exclusion of food items, prices of which are often driven by supply constraints rather than demand shocks...
The survey said when central banks in developing countries target headline inflation, they effectively target food prices, given their high weight..
"The disinflationary process is facing a lot of resistance from food inflation which is stubborn and high, primarily due to supply side factors affected by weather conditions," Das said.. India's central bank has been targeting headline inflation at 4 per cent, with a tolerance band of 2 percentage points, which shapes its monetary policies, especially interest rates..
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