The Demand Constraint-A Note on Role of Foodgrain Prices and Income Inequality

A Note on Role of Foodgrain Prices and Income Inequality N Krishnaji This note is concerned with the determinants of the aggregate household demand in India for consumption items other than food. It analyses a part of the data available in official sources. The objective is to see whether and to what extent non-food demand is influenced by income inequalities and food prices, particularly cereal prices. Some earlier studies show that increasing food prices tend to depress the demand for items such as clothing. The results of this study support such findings.