Quick Edit of the Day
A pulse on pulses
Nearly half the increase in consumer price inflation for October was because of the steep rise in the price of pulses. Higher prices of dal have already become a talking point in homes across the country. Some analysts have said that the results of the Bihar elections were at least partly explained by the steep rise in the price of pulses. Policymakers are also worried because the monthly data is part of a bigger story.
Two intersecting trends are important. First, pulses have been becoming more expensive over recent years because of the growing demand for protein as a result of higher incomes. Second, the rate of change of these prices has followed a metronomic pattern. An interesting new report by ratings agency Crisil shows that there is almost a predictable pattern to pulses inflation in India. It spikes every three years.
Successive governments have promised incentives for farmers to shift from cereals to pulses, but there has been little success till now.