Ppt of Food Inflation.
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Transcript of Ppt of Food Inflation.
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