Recent spiral in the food prices has a number of impacts across the globe, including India. According to a latest World Bank study, there was a modest decline in poverty in 2005 since early 1980s. This alarming trend of rising prices has the potential to reverse the development trend in the country. Therefore, this brief attempts to analyse the nature of current trend of spiralling prices and its causes. It also suggests appropriate policy interventions to lessen the impact of increasing food prices.