India has experienced persistent and high food inflation in the recent past. What could be the reasons? 1) Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%. 2) As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change. 3) The food supply chain has structural constraints Which of the statements given above are correct?

Question

CollectorBabu · Accepted Answer

Correct Answer: 2 and 3 only. As per Reserve Bank of India, due to moderation, food price inflation remains persistently elevated for an year which affects the structural demand supply in many commodities. The causes of food inflation could be from higher food prices across the world, less growth in agricultural in respect to faster GDP growth, increase in demand of better quality food products, higher Inflation, inefficiency in Food Supply Chain.

Contact Information

Services