Inthe inflation rate in India was around 3. Thus, a large section of the population are losing out on their purchasing power without realizing about it. The Government has again been talking about inclusive growth and stress on rural India.
These things have not been taken care of in the past and even when discussed, nothing substantial has been done in order to overcome these challenges. It is only that the Government needs to be more proactive rather then being reactive.
The Government also needs to unload the wheat inventory it has in its storage locations. To report a factual error in this article, click here. I am not sure if the Government is still doing enough to have proper food storage facilities in the country.
As mentioned above, there are several ways of curbing food inflation. This again points of inefficiency and the failure to help the farmers adopt latest technology in order to increase the crop output.
Crackdown on hoarders and black marketers could help prevent prices from rising further. This in turn will impact the consumption part of the GDP growth.
Init was estimated that India loses INR 58, crore worth of agricultural food items due to lack of post harvesting infrastructure such as cold chains, transportation, and storage facilities. The per hectare agricultural yield in India is half that of China.
This article looks back into the spiraling food inflation inits implications, reasons and solutions.
For those who realize this, there is only one option - to speculate in the stock markets and try to get returns which beat the annual inflation rate.
Disruptive Investor The wholesale food prices in India touched a 10 year high with food inflation coming at The Government should allow the private sector to import and store the primary agricultural commodities at zero import duty.
This will have an immediate impact on the prices. The key reason cited for the spiraling food price inflation is the bad monsoon in India.
However, looking into the very near term, some ways to ease food prices would be: Unfortunately, this is the segment which is experiencing highest inflation.
A 4 percent increase in the rate of inflation in for example would mean an individual would need to spend 4 percent more on the goods he was purchasing than he would have done in Impact of Food Inflation on Indian Consumers The high food price inflation is having a significant impact on the Indian consumer in general and the Indian middle class in particular.
The inflation rate is calculated using the price increase of a defined product basket.The key reason cited for the spiraling food price inflation is the bad monsoon in India. However, I have some other reasons (not so much talked about) for the spiraling food price inflation in India.
Inflation in general and food price inflation in particular has been a persistent problem in India over the past few years. Price stability is crucial for sustainable growth as persistent. of food price inﬂ ation over a long period of time is undesirable.
Also, it has necessitated aggressive monetary tightening by the central bank even at the risk of a moderation in economic growth. Food and beverages price data from a leading online marketplace is used to compute an online price index. This index successfully tracks the offi cial consumer price index not only at the aggregate level, but also at the subgroup level.
The results indicate that online prices can be a quick and effi cient source of price data, which can provide a cheap. India uses the Wholesale Price Index (WPI) to calculate and then decide the inflation rate in the economy.
Most developed countries use the Consumer Price Index (CPI) to calculate inflation. Food Prices and Inflation Ratio of Consumer Price Index for Food to Index for All Items Less Food, Annually,Monthly, In India food prices have risen.Download