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In this State of the Economy Podcast, Subramani Ra Mancombu speaks to Pushan Sharma, Director of Research at Crisil Market Intelligence and Analytics, to discuss the innovative Roti Rice Rate (RRR), a vital tool for understanding the monthly fluctuations in food prices, the issue of inflation, and its direct impact on the cost of food in India.
The discussion highlights the need for relatable metrics to track the cost of a basic meal for the average Indian household. Pushan elaborates on the rationale behind the Roti Rice Rate, saying, “This index connects statistical data with the real-life expenses of households.”
As inflation remains a concern for both governments and consumers, Pushan points out, “Food accounts for around 50% of consumer price inflation, so it’s vital to monitor the costs faced by everyday people.”
Key commodities driving inflation include tomatoes, onions, and potatoes, which frequently see large price changes. Pushan notes, “Tomatoes and onions are especially volatile, driving inflation in certain seasons.” He explores the seasonal factors that influence these prices, particularly during the kharif and rabi harvests, and explains why food costs can rise sharply in specific months.
The discussion also highlights the government’s role in managing inflation through various policies. Pushan explains that while government interventions can temporarily stabilise prices, the long-term solution lies in enhancing food storage infrastructure. This improvement is essential for reducing volatility in food prices and ensuring a more stable supply.
Looking ahead, Pushan offers insights into potential trends. He suggests that, although the immediate outlook seems stable, we can expect fluctuations as we enter the new year. He concludes with a poignant reminder: “Understanding inflation isn’t just about numbers; it’s about recognising how these figures impact citizens’ daily lives.” This underscores the importance of considering the real-world effects of inflation on people’s everyday experiences.
Listen in!
(Host: Subramani Ra Mancombu; Producer: Siddharth Mathew Cherian)
About the State of the Economy podcast
India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders.
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