Food Prices and Modern Retail: The Case of Delhi

SummaryModern retail is quickly becoming an important driver of change in food markets in developing countries. However, the impact of this development on basic food prices facing urban consumers is not well understood. In a detailed case study of Delhi, modern retail is shown to emerge quickly, offering more labeled and branded food products and more choice than traditional markets. We further find that modern retail at its mere incipience in India sells basic foods mostly at the same or lower prices than traditional retail and might thus become an important contributor to improved urban food security.