Food prices in India may rise again

By Vivek Dubey

CNBC-TV18.com

Published Dec 08, 2023

While inflation has cooled down in September and October, the risk of another spike in food inflation remains.

Some key vegetable prices are still rising, and this may raise the overall inflation rate again.

The Reserve Bank of India (RBI) projects 5.4% retail inflation in FY24, while the target rate is 4%.

The high global prices of sugar are also a concern.

International edible oil prices are soft, and milk prices in India have stabilised.

The RBI projects a 7% real GDP growth (after deducting the inflation rate) for FY24.

India has also banned onion exports from December 8, 2023, to March 2024, according to a recent notification.

Centre has directed sugar mills to stop using sugarcane juice for ethanol production, ensuring sweetener supply and price stability.