The extension of the free food grain scheme by another five years is clearly geared towards firming up support for the BJP ahead of state elections this month (as well as the general election next year) and implies a slightly larger outlay on food subsidies than the years prior to the pandemic. Meanwhile, the renewed surge in vegetable prices so far this month highlights that the upside risks to inflation remain large.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services