Food inflation in India

India's major workforce,around sixty percent, is engaged in agriculture but contributing only twenty percent to GDP.Even though India ranks second in world in food production,today food inflation in India is high to 16.22 percent.

The main cause for food inflation is that Indian farmers depends mainly on rainfall, as agricultural land doesn't have a proper irrigation system in all parts of India. Last year because of monsoon failure overall production decreased. Over the years due to urbanisation, land under cultivation has reduced. On top of it India is lagging in modern agriculture practices and technology,leading it to a very low per hector agriculture yield. Subsidies provided by government to farmers rarely reach to farmers due to corruption.

Government should work on reducing food loss in transportation. Import duty on essential commodities should be decrease when required, so that food inflation can be controlled. Government should also control the black marketing where retailers buy a big lot of food products at low price and store it. As food supply in market will decrease,food price will increase and it results in inflation. When food price has increased then retailers start selling the stored food items , thereby earning a lot. Government should also educate farmers so that they can use new technology and yield more in same amount of land.

United Nation's Food and Agriculture has warned that global food stock has reach a critical stage. Indian Government has taken many initiative for boosting agriculture but at this high food inflation government should take emergency steps to control it and then reduce it.Major part of most Indian's expenditure is on food so food inflation directly effects the life of most of Indian's. India is showing a good overall growth at this time when major developed and developing countries of world is under recession. So if India can slowly show growth in agriculture ,with proper planning and management ,then it has a very bright future ahead.

Montek calls for sweeping reforms to boost farmville

India is an agriculture based country with nearly 60 percent of Indian population livelihood is dependent on agriculture. Government has for years try to create new reforms for farmers. Now government has decided to boost the overall production by improving the production per unit of land.Initiative includes good irrigation system, good transport system,good tractors at affordable rates,subsidies in oil prices and other useful measures.
Even though more than 60 percent of people are in agriculture but they contribute only 20 percent to GDP,on the other hand industry has 20 percent of India workforce and it contributes to 20 percent GDP and service sector has last 20 percent workforce and they contribute 60 percent to GDP. So the move from agriculture to industry and industry to service can really be helpful to India in a long run as, growth will increase at a greater pace but at the same time we should not forgot that to suffice, the need of food for such a large population ,India need to be self sufficient(i.e. it should not depend on import for its agriculture products).
In short term boosting farm output will reduce the current food inflation and in long run contribute to overall growth of India. India stand second in world's population but the agriculture system followed is not sufficient for its own population. Irrigation system used is far behind the age it is in today.
There are many pit falls in reforms that Government comes out with. One of them might be said that Government buy agri product from farmers at a subsidize rate and store the food after transporting it. So first government gives subsidy than it bears the cost of transportation and than the cost for storing it. Instead if government had allowed farmers to sell directly to 'mandi' at subsidized rate and pay the farmers the amount they need to make a profit(i.e. rate difference between original rate at which farmers want to sell to make a profit and the subsidized rate at which farmers has sell in market) than it can save money on transportation and storage and loss while transportation.
Nearly Eighty percent of total expenditure of rural people and nearly 60 percent of total expenditure of urban class goes in buying food products. So reforms are necessary to bring down the food inflation down to single digit by the end of this year otherwise poor will not be able to bear this inflation.

is it an end or a beginning

Pick up any newspaper in the past six months and you'll see a plethora of stories on climate change!! what is this climate change all about?? where is it leading us to??

I am not here to answer all this question about climate change including Kyoto Protocol to Copenhagen Summit. I am not here to tell you about reports given by UNFCCC or by IPCC, rather I am here to ask you if all this climate change is true, than is it not clear that we are heading towards an end of human race..... We are neglecting consequences of our own action. It might not effect us but in a long run it will effect our generations to come... So is it not our duty to do something for this cause... Will you not find absurd if incase all snow on Himalayas vanishes,if temperature in your city rises to unbearable level,when agriculture will reduce because of less rainfall..

I know it sounds weird to some of you who thinks in reality no climate change is taking place.. But for them if our government is thinking so much to keep our earth green than why not we make a contribution by starting a revolution to keep our earth green.. I know for some it seems like its not an end to human race but why not we contribute to start a life on earth which can help to minimize the probability of climate change in future. ...

check the snaps above if you have doubt about climate change ,rest all is your opinion!!


hey got some work, will be back and contribute more to the blog till than good bye...