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Food rising prices and Food secutity
- 1. Food Rising Prices Prepared By -: ParminderJIt Kaur BS13MAEC003 1St Sem. PARMINDERJEET KAUR BS13MAEC003 M.A. Economics – 1st Sem.
- 2. Food inflation -:Methods to measure , Trends Reasons and Impacts Methods to control Food Inflation Food security - : Need and India ‘ s food security Govt. Schemes PDS - : Benefits and Problems
- 3. Food inflation Consistent rise in price level . Rise is neither seasonal nor sudden.
- 4. Methods of Measurement A . Change in Price Index- : 2. Wholesale Price Index (WPI) B . Gross National Product (GNP Deflator)
- 5. Food inflation ( Skyrocketing Prices ) Item 2004 2008 2010 Wheat 9 20 29 Rice 10 22 48 Sugar 14 20 50 Edible oil 40 95 100 Dalda 40 72 85 Channa dal 25 40 56 Mung dal 24 48 100 Besan 20 48 60 Milk 14 20 30 Caro sine oil 18 35 35 Increase in Wheat price is not good.
- 6. Current prices in Delhi commodity Price (rs. ) Range Milk 35.00 30-40 Loaf of fresh bread (500g) 22.00 20-27 Rice (1 kg) 44.00 37-50 Local cheese(1kg) 220 180-300 Chicken 180 150-220 Apples 120 100-150 Oranges 70 50-100 Tomato 30 20-40 Potato 20 15.81-30 Lettuce(1 head) 20 20-40
- 7. Recommended minimum amount (2000kalories ) commodity Quantity Price (rs. ) Milk 0.25 liter 8.75 Loaf of fresh bread 130 gm. 5.72 Rice 0.13kg 5.72 Local cheese 0.15kg 35.00 Chicken 0.25kg 45.00 Apples 0.34kg 40.80 Oranges 0.34kg 23.80 Tomato 0.21kg 6.30 Potato 0.25kg 5.00 Lettuce 0.15head 3.75 Eggs 3.60 14.40 Daily expense = 192.24 rs. Monthly expense = 5,959.44 rs.
- 12. Retail prices of commodities in Delhi (2009-2012) Item 2012 2011 2010 2009 Rice 23 23 22 17 Wheat 15.5 16 13 13 Atta 17 18 14 14 Channa dal 35 38 35 35 Arhar dal 69 84 50 42 Moong dal 68 81 45 36 Masoor dal 54 62 62 39 Sugar 34 42.5 23 17 Milk 25 22 21 20 Groundnut oil 135 113 109 121 Mustard oil 79 71 77 69 Vanaspati 77 57 54 67
- 13. Cont. Tea loose 149 156 144 107 Salt pack 13 12 11 10 Potato 10 9 8 8 Onion 33 23 21 9 Increase in basic necessities of life make survival difficult.
- 14. Food Inflation Year Inflation rate 2005-06 4.83 2006-07 7.78 2007-08 5.46 2008-09 8.01 2009-10 14.72 2010-11 15.78 2011-12 7.27 2012-13 14.3 10 % increase is unpleasant for any economy
- 16. Factors for rising prices 1) Decrease in Production 2) Minimum Support Price 3) Government policies 4) Substitute product 5) Demand/consumption 6) Seasonal Cycles 7) International prices 8) Hoarding
- 17. Impacts of Food Inflation Low purchasing power of common man . Corruption in PDS shops. Low income growth .
- 19. Measures to Control Food Inflation Increase in Production provision of Subsidies . Proper commercial policies Ban on Exports. Encouragement to savings.
- 20. Food security
- 36. Conclusion Need of Immediate action Passing of Food Security Bill can help . Corruption in PDS system due to Political Intervention .
- 37. • Food security • No hoarding • Increase in production