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Indian Economy II - Assignment
Indian Economy II - Assignment
Question Number 1:- “ despite the slowdown in the agricultural sector and
higher increases in the cost of food production during the post-economic
reforms period (1992–2013), food prices were relatively low compared to
the initial (1967–80) and the maturing (1980–92) stages of the Green
Revolution.” What explains relatively stable agriculture prices in the
post economic-reform period? (Agrarian Performance and Food Price
Inflation in India; Pre and Post-Economic Liberalisation by Shantanu Nair
and Leena Mary Eapen)
Throwing light on the above statement, it is argued that food prices were
relatively low due to more stable agricultural growth post 1991-92,
higher buffer food stocks, greater coverage of the public distribution
system, and better responses to food price fluctuations due to
import/trade liberalization and a more comfortable foreign exchange
reserves position.
To explain this, we will have to understand the food price trends and low
price inflation during post ER period-