(e) Rigidities in supply chain – For a large country of India’s size and population, distribution networks – from farm gate to retail level – occupies a central role in the determination of prices at different levels, and hence in conditioning food inflation.
Of course, merely putting stricter regulations in place is not enough; these actually have to be applied. As far as fiscal regulations are concerned, a certain degree of doubt about the consistent implementation thereof is not entirely unwarranted. The leeway and discretion accorded for interpreting these regulations are immense and being used time and time again to delay budgetary consolidation.