into higher global food prices as the import demand is large. hence, imports do not necessarily lead to domestic prices moving lower. one important determinant of prices of agricultural production in india has been the minimum support price ( msp ) announced by the government for procurement of various commodities. the high increase in msp since 2007 – 08 has given an upward bias to agricultural prices ( table 5 ). reduced availability of foodgrains also tends to keep food prices high. as per the economic survey 2009 – 10, per capita net availability per day of cereals and pulses has been lower than that observed in the previous four decades. the per capita daily availability of foodgrains was 447 grams in the 1960s and 1970s, which successively increased to 459 grams in the 1980s and 478 grams in the 1990s but came down to 446 grams during 2000 – 08 and stood still lower at 436 grams in 2008. severe drought in major parts of the country during the current year has perceptibly worsened food availability further. in particular, the situation is far more worrisome for pulses : its per capita net availability per day has gone down from around 60 – 70 grams during the 1950s to around 30 grams currently. on the demand side, a major economic transformation in india in the recent years has been the surge in rural demand which has now lower dependence on the farm sector. as per the national sample survey ( nss ) data, the share of rural consumption in overall consumption was about 58 per cent in 2006 – 07. the non - farm sector consumption accounts for about 55 – 60 per cent of the total rural consumption. while farm sector demand is more prone to the vagaries of weather, non - farm rural sector has imparted more stability in the recent years due to increased focus on the rural development, particularly through enhanced outlays under various public schemes. given the stage of our economic development, the demand for food items would increase with economic growth and rise in income levels. demographic dividend which has been contributing towards india ’ s growth and productivity, has also raised consumption demand, particularly on food. as per the united nations projection, high - consumption cohort in the age - group of 15 – 59 individuals comprising around 65 per cent of india ’ s total population will continue dominate demand till 2040. thus, lower per capita availability of foodgrains and structural shortage of key agricultural commodities like oilseeds and pulses combined with the rising demand have kept food price inflation

##ation. the geographical segmentation is reflected in european banks ’ reliance on eurosystem refinancing. after the lehman insolvency, this reliance initially increased in most countries as risk aversion rose. later, segmentation developed differently across countries, reflecting the perceived riskiness of each country. more recently, the eurosystem policy to mitigate market segmentation and to safeguard an appropriate monetary policy transmission, namely by announcing outright monetary transactions ( omts ), is mirrored in reduced country differences. but this is no justification for the omts. it has eased market tensions, especially redomination risk. nonetheless, the bundesbank ’ s concerns are still extremely relevant. country differences regarding the reliance on eurosystem refinancing remain large, as indicated by the share of banks ’ balance sheets that is financed by eurosystem liquidity. this has also become obvious in the structure of early repayments of the three - year ltros. it has mainly been banks located in the core countries that have reduced outstanding volumes. furthermore, the reliance on national counterparties has increased. over the last few years, euro - area cross - border activity has declined constantly. 3. regulatory changes as reaction to the crisis and their impact on market structure and banking the experience of the recent financial crisis has triggered regulatory changes, especially in the banking sector. the new basel iii banking standards will address some of the root causes of the financial crisis and aim to prevent another build - up of liquidity and solvency risks. the basel iii framework for liquidity risk regulation encompasses two ratios – the liquidity coverage ratio ( lcr ) and the net stable funding ratio ( nsfr ). both will have an impact on how banks manage their business activities. as the lcr will be introduced earlier and the details are far more developed, i will discuss its impact on euro money markets. however, the lcr might yet be revised before its final implementation. with regard to the assets side of a bank ’ s balance sheet, a bank will primarily purchase high quality liquid assets ( hqla ) to improve lcr compliance. holding these assets outright will improve the lcr. demand for these assets is likely to increase, potentially causing them to trade at a premium. this regulatory - driven additional demand might reduce appetite for lower - quality liquid assets. turning to the liabilities side, banks with an lcr of below one will need to substitute shortterm for longer - term funding. this could