However, food currently accounts for over one-third of our wholesale price index (WPI) and over onehalf of our consumer price index (CPI). Since the food economy is essentially dependent on domestic production, fluctuation in agricultural production has a direct bearing on output and inflation.
It is important, however, to note that the adverse impact of a fall in agricultural output is significantly less on GDP than on inflation because of still a very high weightage of food in our price indices. As you know, weather plays an important part in agricultural production.