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Determinants of Food Inflation in India

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  • Narula, Anirudh

Abstract

This paper aims to elucidate the different determinants of food inflation in India over 1997 to 2017. The paper uses a Vector Error Correction Model (VECM), and a Vector Auto Regression Model (VAR).The paper considers both supply and demand-side determinants on an annualised scale. The VECM model finds a long-run relationship between Food Inflation in India, Area under Acreage, Minimum Support Prices (MSP), and the trend in Urban Population. The VAR model finds a relationship between Food Inflation, and the FAO’s Food Price Index; Food Inflation, and Total Cost of Cultivation; and Food Inflation and the Long Period Average at I (1).

Suggested Citation

  • Narula, Anirudh, 2019. "Determinants of Food Inflation in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 74(02), April.
  • Handle: RePEc:ags:inijae:343384
    DOI: 10.22004/ag.econ.343384
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    References listed on IDEAS

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    1. Anderson, John W., 2000. "The Surge in Oil Prices: Anatomy of a Non-Crisis," Discussion Papers 10463, Resources for the Future.
    2. Hellin, Jon & Krishna, Vijesh & Erenstein, Olaf & Boeber, Christian, 2015. "India’s Poultry Revolution: Implications for its Sustenance and the Global Poultry Trade," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-14, July.
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    Cited by:

    1. Maureen Teresa Odongo & Roseline Nyakerario Misati & Anne Wangari Kamau & Kethi Ngoka Kisingu, 2022. "Climate Change and Inflation in Eastern and Southern Africa," Sustainability, MDPI, vol. 14(22), pages 1-17, November.

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