Budget Sees Lower Food Subsidies But Risks Remain

India's wholesale food price inflation continues to stay stubbornly in high double-digit territory, with prices climbing by 17.4% year-on-year in January 2010. The price increases, coming so closely on the back of 2008's aggressive global food price spikes and subsequent food security concerns, have forced more consumers to turn away from the open market towards the country's price-managed public distribution system (PDS). This trend has emerged to such a degree that should high double-digit inflation linger into the beginning of India's next financial year, starting in April, the country's plans to cut its food subsidy budget in 2010/11 could be

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