Tackling Food

Inflation
Presented By
Ashwinkumar Kokku - 67
Malcolm Pinto -89
Samir Vele -
Nitin Jadhav -
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Agriculture: An Overview
 Agriculture contributes 14.6% of GDP
 Provides employment to 55% of workforce
 Ranks second worldwide In food production
 Poor infrastructure and channel management
 Poor disbursement of government funds
 Rising food inflation
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• Too many middlemen

• No value addition

• High margins

• As much as 30% output

wasted
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Facts
 One of the worst in Hunger among the population with 214
million people denied the right to Food.
 18% of Indian population do not get food to eat.
 In year 2009 the overall inflation rate increased at 1-2 % still
there was a 20 % increase in Food Prices.
 Food like Rice, Atta, Sugar, Vegetables etc.
 In the year 2010 India lost INR 60,000 crore worth of
agricultural food items due to lack of post harvesting
infrastructure such as cold chains, transportation, and storage
facilities.
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Reasons for rise in Food prices

 Rise in Input Prices.
 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. 
 The increase in gap between farm gate and wholesale prices.
 MNREGA scheme which has led to labor shortages amongst rural workers
and higher wages.
 Rising percentage of Middle Class in India which is demanding increasing
quantities of better quality food products. With increasing incomes, people
prefer to eat more meat which is more food grain intensive than a
vegetarian diet.
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This Shows nearly 43% of the personal disposable income goes into food
products. Unfortunately, this is the segment which is experiencing highest
inflation.
A high food inflation ensures that consumers have to cut back on their spending
(on non-necessary items).
This in turn will impact the consumption part of theGDP growth.
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Recommendations
 Use of Technology
 New delivery system for food grains
 Creation of a philanthropy which pools money
from corporates as part of their CSR and handles
the delivery of food grains from farm to consumer
 Improved bazaar areas where vendors can sell
fresh produce in an organized setting
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Problems
 Middlemen (Arhatiyas) have a great deal of
political clout especially in Punjab and West
Bengal.
 Will have to find alternate sources of employment
for displaced traders