Econintersect: Sunil Chandra, an investment banker in New Delhi, sees all the turmoil with isolated food shortages and higher food prices as a two edged sword. Yes, food inflation is stressful to the consumer economy and central bank tightening in the face of food and overall inflation will slow economic growth. But Chandra says there is an upside as well.India is a food surplus country, producing more food than it consumes. Chandra says that not only industrial production can produce growth, but improving agricultural technology can also lead to economic growth for countries with food surpluses who can export to countries with shortages.
Source: GEI Opinion