Over 50% of the Indian population depends on agriculture for their daily living and the annual monsoon has spoiled their immediate future this year. The food production is down by over 20% in the last six months, and that has already pushed up the food prices by over 60% in case of some pulses and grains.
Overall food inflation has touched a multi decade high of 19.7% last week, as per government data released yesterday. The food price inflation might be forcing the Central bank to start tightening the interest rates in the coming weeks, experts fear. That could spoil the chances of a smart economic recovery.