Rice price in India is the most important economic indicator. Agriculture is an important part of India's economy and it depends on rice prices in India for its performance. India imports a significant amount of rice from abroad, it is also one of the major rice exporters in the world. The benchmark for rice price in India is adjusted to international prices by using the principle of parity capitalization which has proven to be quite accurate because it does not take into consideration changes in inflation or exchange rates when comparing prices with international rates as well as individual company pricing policies.
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