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Frozen carrots: The weapon in India's inflation war

By Bloomberg | China Daily | Updated: 2015-05-27 07:18

The workers extracting mango pulp, freezing carrots and packing spring rolls in southern India are the foot soldiers in Indian Prime Minister Narendra Modi's inflation war.

The complex is one of four government-backed "mega food parks" intended to jumpstart a nascent food processing industry. Modi plans to help build another 38 to reduce wastage that sees a third of all fruits and vegetables tossed in the trash, pushing up prices for India's 1.2 billion people.

The effort is more crucial than ever after his government agreed with the central bank to target consumer price inflation at about 4 percent in the next few years. Since food prices account for about half of India's CPI basket, Reserve Bank of India Governor Raghuram Rajan has little scope to reduce interest rates if they aren't contained.

Frozen carrots: The weapon in India's inflation war

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