- According to a report by CRISIL, despite the 3.6% rise in agricultural growth in the last decade, food inflation has averaged 8.1%. The reasons for this are:
- High minimum support prices for food grains – that has led to excessive food grain production.
- Poor supply chains.
- Huge amounts of wastage and pilferage – almost 1/3rd of the entire production.
- Despite the tripling of govt stocks of rice, wheat and coarse cereal, the govt’s inability to intervene and release stocked agricultural produce has led to soaring prices.
- Therefore, primary emphasis should be on improving supply chain and decreasing wastage followed by focus on beefing up crop production.
- Read at: http://www.thehindu.com/todays-paper/tp-business/beef-up-supply-chain-to-check-food-inflation-crisil/article6076629.ece
Exams Perspective:
- Food Inflation
- Stagflation
- MSP
- APMC Reforms
- Supply Chain