ABSTRACT
During the last few years, there has been a signifi cant increase in global food prices due to several structural and cyclical factors. India has experienced high food infl ation in the last two years. People from lower income groups spend 60-70 per cent of their income on food and have little capacity to adapt as prices rise and wages may not adjust accordingly. Apart from the problem of increasing food prices, India is also facing the adverse impact of the global fi nancial crisis since the third quarter of 2008. India has largely avoided the impact on the banking system. However, the crisis has adverse impact on the liquidity situation and economic growth in India. This in turn can have an adverse effect on the poor and food security of the country.
