Global food prices had increased at a rapid pace before the global crisis, softened somewhat after the crisis, before rising back to the pre-crisis level in the recent period. Various estimates by the FAO and other international agencies indicate that agriculture prices, which reflect the growing demand arising from food, fuel and feed requirements, would remain elevated over the medium term.
What is important for India is that even when global food prices may drop below domestic food prices, import option for India as a means to contain food inflation could be limited, since once India enters the global market on the buying side, that could raise global prices.