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[ Wed, Dec 04th 2024 ]: Bill Williamson
Food inflation in policy formulation a complex issue, says EAC-PM member Shah
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Food inflation in policy formulation a complex issue, says EAC-PM member Shah

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Shah, who is the managing director and chief executive of Kotak Mutual Fund, questioned if the computation takes into account free food to over 80 crore Indians under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) while arriving at the number.
The article from Zee Business discusses the complexities of addressing food inflation in policy formulation, as highlighted by Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister (EAC-PM). Sanyal points out that food inflation is a multifaceted issue influenced by various factors including supply chain disruptions, weather conditions, and global market dynamics. He emphasizes that while monetary policy can manage overall inflation, food inflation requires a more nuanced approach involving agricultural policies, trade policies, and logistics improvements. Sanyal also notes the challenges in predicting food prices due to their volatility and the need for a balanced strategy that does not overly rely on monetary tightening, which could adversely affect economic growth. He advocates for better data collection and analysis to anticipate and mitigate food price spikes, suggesting that a combination of short-term interventions and long-term structural reforms are necessary to manage food inflation effectively.

Read the Full Zee Business Article at:
[ https://www.zeebiz.com/economy-infra/news-food-inflation-in-policy-formulation-a-complex-issue-says-eac-pm-member-shah-330807 ]