Rising prices might push millions of Indians into poverty: ADB

Rising prices might push millions of Indians into poverty: ADB

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New Delhi, Apr 26 (PTI) Rising food prices in India might push millions of people into extreme poverty, multilateral lending agency the Asian Development Bank (ADB) has warned in a report released today.

According to the report titled ''Global Food Price Inflation and Developing Asia'', a 10 per cent increase in food prices will push as many as 23 million Indians living in the rural area and 6.68 million in the urban zone below poverty line at USD 1.25 (around Rs 55.65) earnings a day.

It added that a 20 per cent rise in food prices will push 45.64 million in rural areas and 13.36 million living in cities into extreme poverty.

In case of a 30 per cent surge in food prices, a whopping 68.45 million rural people and 20.04 million urban people would be affected.

These findings come amid last week''s Planning Commission''s preliminary data that India''s poverty is estimated to have declined to 32 per cent in 2009-10 from 37.2 per cent five years ago.

Food inflation in India remained in double digits for greater part of last fiscal. Though it has shown signs of moderation since March, it is still hovering above the government''s comfort level of 5-6 per cent growth.

India''s headline inflation has remained above 8 per cent since February 2010. Overall inflation in March stood at 8.98 per cent, above the government''s projection of 8 per cent.

Some countries (such as China, India, Indonesia, Republic of Korea, Malaysia and Thailand) are fighting inflation through tighter monetary policy.