Global demand will put more pressure on India. Forty-six countries, including Sri Lanka and Pakistan, are in need or will be needing external food assistance.
Global food prices surged by 28% in 2021 compared to year before — highest in a decade, according to UN estimates. By May 2022, food prices were 60% higher compared to 2020.
The government will permit purchases of 2 million tons each of the two vegetable oils per annum this fiscal year and the next, according to a notification by the finance ministry.
While a lot has been talked about commodities that have become expensive, not much is being talked about commodities that are selling cheaper than last year.
India prioritised the domestic market even as the move risks its international image as a reliable supplier. Still, the government’s wheat procurement may not meet its needs.
Food companies are under pressure due to rising edible oil prices. Britannia had passed on 65% of its incremental input cost rises in 2021-22 by reducing weights on their existing price points.
Finance ministry says the proposed revamp will focus on structural reforms, rate rationalisation & ease of living, & will be deliberated upon in the coming weeks.
The project is meant to be a ‘protective shield that will keep expanding’, the PM said. It is on the lines of the ‘Golden Dome’ announced by Trump, it is learnt.
Standing up to America is usually not a personal risk for a leader in India. Any suggestions of foreign pressure unites India behind who they see as leading them in that fight.
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