Imperfect market integration in India leads to higher food prices.
The study looked at how food prices in different parts of India are connected. They found that prices don't always match up perfectly between regions, with some states and products showing more differences than others. Rice prices were the most closely linked between wholesale and retail markets. When wholesale prices go up, retail prices go up faster than when wholesale prices go down. Before a new tax was introduced, crossing state borders could make prices go up. Overall, there are still opportunities for better coordination between markets to help keep food prices stable.