Food and inflation: Time to expose the non-linearities
The more a farmer spends on fertiliser and pesticide, which he believes that he must to maintain yields from his gradually decaying parcel of land, the more is the rise in the disease burden amongst those who produce the food and those who consume it. It is not just about one shortcoming in the way India calculates food price. It is about a fundamental gap in the economic theory of calculating inflation based on food prices.