V.E.S.COLLEGE OF ARTS,SCIENCE & COMMERCE.

T.Y.B.COM(B&I) VIth SEM

IMPACT OF FOOD INFLATION IN INDIA

GROUP MEMBERS

• ROHIT BORDE 07• ANJALI KALRA 16• TRUPTI SADLAPURKAR

39• SHARAL LOBO 48• NEHA VISWANATHAN 30• ROSHNI SACHDEV

38• JYOTI SINGH 54

INFLATIONIn economics, inflation is a rise in the general  level of price of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services.

INFLATION DEPENDING ON SPECIFIC CIRCUMSTANCES

Wholesale Price Index

Commodity Price Index

IMPACT OF FOOD INFLATION

Leads to decline in GDP

Investors invest in Bank

Second round of food inflation & cascading effect on food prices

Exacerbation of inflation in food importing countries

IMPACT OF FOOD INFLATION ON INDIAN CONSUMERS

WHAT IS CAUSING FOOD INFLATION IN INDIA?

While the Indian people suffer from incessantly rising food prices, the Government mandarins were busy in the recent period, celebrating the Indian growth story at the World Economic Forum in Davos.

WHAT ARE THE MAIN REASONS UNDERLYING FOOD INFLATION

IN INDIA The immediate reason for the spurt in the prices of specific food items, like onions today or earlier in the case of sugar and pulses, is hoarding.

The growing penetration of big corporate in the food economy,

Finally, the cuts in subsidies and price hikes of inputs like diesel and fertilizer are also contributing to food inflation.

OTHER REASONS FOR THE FOOD INFLATION IN INDIA

Inadequate agricultural research, poor extension services, overuse of groundwater, and incentives for unsuitable cropping patterns have caused degeneration of soil quality and reduced the productivity of land and other inputs.

Poor distribution, growing concentration in the market and inadequate public involvement, have all been crucial in allowing food prices to rise in this appalling manner.

WHAT IS THE CURRENT STATUS OF INFLATION IN

INDIA year 2006-

07

2007-08 2008-09 2009-10

All

Commoditie

s

6.51 4.82 8.03 3.57

Food 7.99 5.97 9.07 14.52

WHAT SHOULD THE GOVT. DO TO CONTROL FOOD

INFLATIONThe present steps being undertaken by the Government are inadequate. What we need is a long-term strategy to fight inflation. The first step should be to strengthen state intervention in the food economy, both in food distribution and production. The Government is dithering on the Food Security legislation.

HOW DOES FUTURE TRADING CONTRIBUTE TO INFLATION?WHY SHOULD IT BE PROHIBITED?

CONCLUSION