One of the hallmarks of a Third World Economy is the high weight of food in the consumer price index (CPI). People spend a larger proportion of per capita on food in poorer countries. Food and Beverages has above 45 per cent weight in India’s CPI. The weight is in the range of 10-15 per cent for US indices, and less than 2 per cent for Japan and Germany.
One of the problematic items in economic and environmental terms in the Indian food basket is edible oil. India imports 60 per cent of its cooking oils, and more than half those
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