RBI Governor D Subbarao has said that rising prosperity in rural India is leading to food scarcity, which is driving up food prices. He said, though RBI is responsible for management of inflation, food inflation arises mainly due to supply side constraints. He was talking to students of the Indian Institute of Technology at Bhubaneswar in Odisha. He said, there exists a paradoxical situation of subsidizing farmers for producing food and subsidising consumers so that that they get food at lower price, which he termed simply unsustainable. Mr. Subbarao said, since rural incomes are going up, people are eating better by shifting from cereal to protein rich diet and it is leading to food scarcity. Food inflation, which has been hovering in double digit levels for the last few months has been a cause of concern for the government. It rose to 11.49 per cent for the week ended February 12 from 11.05 per cent in the previous period, driven by rising prices of milk, egg, meat and vegetables. The RBI Governor said, to combat food scarcity and consequent soaring prices, immediate steps should be taken to raise agriculture output substantially in the country. He said, for stepping up farm productivity and production, it is necessary to increase investment in water management and rural infrastructure. Referring to world-wide food shortage, Subbarao said that between December 2009 and December 2010, food prices in the world market had gone up by 25 per cent.