Why India's soaring food inflation is a global problem - BBC News

India is keeping domestic food prices in check with export bans - but what does this mean for the world?

16 hours agoShareclose panelShare pageCopy linkAbout sharingImage source, Getty ImagesImage caption, Onion prices have been on the rise in IndiaBy Nikhil InamdarBBC News, MumbaiErratic climate conditions - including the driest August in more than a century - have sent food prices spiralling above 11% in India, which is a major player in global agri-trade.

Just as tomato prices begin cooling down, onions have gotten dearer by a quarter since June in the domestic market. And pulses which go into making the humble dal (lentil soup) are now around 20% more expensive than at the beginning of the year.

India's got a "curry problem", some economists say, as the cost of a regular vegetarian meal jumped by a third in the month of July alone.

With some key state elections this year and a big general election looming next summer, the Indian government has swung into action, unleashing a number of measures to tame food inflation.

Following a ban on wheat exports in May 2022, India announced an abrupt stop to non-basmati white rice exports last month. More recently, the finance ministry imposed a duty of 40% on onions to discourage exports and improve domestic supplies.