Fiinovation – Food Inflation In India-truffe

Arts-and-Entertainment Inflation is a modern world challenge faced by not only India, but by any other economy in todays scenario. Inflation in lay mans language is nothing, but a constant increase in the prices of goods and services in an economy. The Indian economy has seen GDP growth in the last few years, but the rise has been uneven across various sectors which has been associated with the high food inflation. Fiinovation has observed that the problem of food inflation has remained stubborn in India since last few years. There are multiple factors which contributes to food inflation in an economy such as increased wages, supply side shocks mainly because of adverse weather conditions, changes in the tastes and preferences of people in an economy, increase in the minimum support prices (MSPs) and drought in certain years can lead to an increase in food inflation. Some of these cases might have influenced inflation in the last few years. Fiinovation realises that monsoon could also be attributed towards rising food prices occasionally in the short-run, but do no have a long term impact on the food prices. India, with its growing population is also ensuring an increase in demand for food. But, the agricultural production has remained sluggish and has failed to match with the demand resulting in increasing prices. Fiinovation suggests that to reduce this demand supply gap there is a need to adopt measures and improved technological methods to increase the productivity of agriculture. Improving supply logistics and increasing buffer stock for storage can also contribute towards balancing the demand supply gap in the economy. As per the statistics provided by the Ministry of Statistics and Programme Implementation (MOSPI), the price of food has increased by almost 3.88 percent in September, 2015 since September, 2014. The trend of inflation from year 2012-15 shows that food inflation in India has averaged at around 8.97 percent, reaching highest at 14.72 percent in November 2013 and lowest at 2.15 percent in July 2015. Fiinovation understands that food inflation has dug a big hole in middlemans pocket and there is a need for the government to adopt measures to deal with this increasing food prices and work towards sustaining the economic activity by securing adequate supply of food at reasonable prices. -Shantanu Negi Media & .munications | Fiinovation About the Author: 相关的主题文章: