RBI's Monetary Policy to Contain Food Inflation?

The soaring food prices in the India is the ever biggest concern for the government and the people. The government is looking for the option to curb the soaring food prices in India, those are out of reach for the poor people.

The food inflation is increasing and the mechanism are falling short in containing the same. The big question arises, the ultimate - monetary policy of the RBI, will it be effective in containing the inflation or food inflation? May be the change in the monetary policy and policy over the existing interest rates structure many help to check the soaring the food prices/inflation in India.

The interest rates will be the effective mechanism to check the supply side of the money. But on the flip side, may take some time to be effective. However, if there any changes in the monetary policy by the RBI, it is going to have impact on the food prices.

The food prices are rising may be due to the bottleneck in the market, may be checked with the effective mechanism over the supply of good and trade policies by the government of India. Any measures to check the bottleneck in the market would have immediate impact on the market and the food prices. However, it is expected that any change in the monetary polices by the RBI will in favor the economy and help to check the food inflation in India.