Stopping the food program will not be an easy choice for Modi. This year, India has had to restrict exports of wheat and rice after erratic weather hurt harvest, adding to pressure on food prices, and rattling global agricultural markets. Running the food scheme for another six months would drain another 700 billion rupees from the budget, the people said. Food Prices“Continuation of this scheme could lead to depleted food grains stocks by next year," according to ICICI Securities Ltd. analysts led by Prasanna Ananthasubramanian. One option for the government would be to “take a leaf out of central banks and ‘taper’ the free food grains scheme," they said.

Source: Mint September 20, 2022 06:37 UTC