Milk may become a hurdle in Modi’s inflation fight in India
Milk is ubiquitous in India — from the morning glassful that most middle class school kids glug to its use in Hindu religious rituals. Now it could become a headache for Prime Minister Narendra Modi’s government as prices soar. The average retail price of milk in India has increased by 12% from a year ago to 57.15 rupees ($0.6962) a liter. A mix of factors is at play — a jump in the cost of cereals has made cattle feed more expensive coupled with lower dairy yields as cows were inadequately fed ..
In turn, milk — which has the second-largest weight in India’s food basket — pushes up overall inflation as well. India’s headline inflation for March fell below the central bank’s target of 6% as high interest rates cooled overall demand, according to data released Wednesday. However, milk inflation trended higher than the overall figure at 9.31%.
High prices of milk and related products — emotive items that most poor families aspire to and wealthier people see as indicators of status — ..
Read more at: ECONOMIC TIMES
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