By Nigam Prusty

NEW DELHI (Reuters) - Opposition protests over rising food prices shut down the parliament on Tuesday, signalling mounting pressure on the government to rein in inflation as it prepares to outline its reform plans in this week's budget.

Opposition members rushed to the middle of parliament's lower house and raised banners after the government turned down their demand for a debate and a vote on rising prices.

Asia's third-largest economy is recovering from the global downturn at a faster-than-expected rate, but food prices are growing at the fastest pace in 11 years and the government fears a backlash from millions of rural poor who are its main voters.

The opposition was beaten in elections last year but inflation has given it a weapon to attack the government, which is under pressure to find a solution without hurting growth in an economy recovering from a six-year-low pace of growth.

Inflation and a high fiscal deficit are major risks to the country's ambitious plan to return economic growth to the 9 percent a year level seen between 2005/06 and 2007/08.

Food prices, which were up nearly 18 percent on year in the week to Feb. 6, are threatening to drive up headline inflation into double digits by March, analysts say.

A focus on price rise may also distract the government from pushing reforms such as the liberalisation of the agricultural sector and freeing up fuel prices that may help cut the fiscal deficit.

The deficit is projected to rise to a 16-year high of 6.8 percent of GDP in 2009/10.