Why food prices will remain high in India

Food inflation in India, driven by supply-side factors like adverse weather affecting crops, has remained at around 8 per cent year-on-year since November 2023. The elevated prices of food has prevented interest rate cuts as headline inflation exceeds the central bank's 4 per cent target. Drought, heat waves, and delayed monsoon rains have led to significant reductions in food supplies, particularly impacting vegetables, while government interventions and upcoming elections further complicate the situation.