09 MAY,2022 | MEDC
Wheat is the world's most important dietary source of calories, and it is now at the focal point of the rising global anxiety about food inflation. Wheat prices worldwide are surging on the spectre of drought in parts of North America and the ongoing Ukraine crisis. Going ahead, the risk is that the rising wheat price trend could spill over to other staples. India has a sizeable international trade in agricultural commodities, and such a situation could compound our existing macroeconomic challenges. Given this background, a well-timed release of the government’s wheat stockpile could play a key role in dampening food inflation in India this year. There is an old military saying … the more you sweat in peace, the less you bleed in war. That has direct implications for macroeconomic policymaking worldwide, especially pertaining to tackling food inflation.
*Picture Credit: Google