Skip to main content

Low food inflation is bad news for farmers (downtoearth)

Three years after Narendra Modi-led NDA government came to power, India witnesses unprecedented level of low food inflation. States like Maharashtra and Madhya Pradesh have been witnessing farmers’ unrest for quite some time now. Six farmers were killed in police firing in a protest rally held in Mandsaur district of Madhya Pradesh to demand fair price of their produce and farm loan waiver.

On the one hand, middle-class celebrates one of the lowest food inflation rates, and on the other hand farmers get nothing in return of their toil and get killed for demanding fair price of their produce.

Food inflation rate in April was 0.31 per cent, which was lower than the inflation rate in January (0.53 per cent). Just one year back, the inflation was hovering around 8.35 per cent. (See table 1)

Analysis shows that low food inflation is directly proportional to fair price of produces in the market. As food inflation witnesses a sharp decline, so is the price of produces in agriculture market across the country.

India had witnessed food inflation rate of 8.35 per cent in July 2016. Since then there has been sharp decline in food inflation rate. Meanwhile, there has been sharp decline in commodity prices, too, which has been fueling farmers’ unrest across the country.

Table 1
India’s food inflation
Time period

Food inflation rate

July 2016

8.35

Oct 2016

3.32

Jan 2017

0.53

Apr 2017

0.31

Food inflation fell to 0.53 per cent in January 2017 as compared to 1.37 per cent in December 2016. It was the demonetisation era when 86 per cent of high-denomination currency was rendered invalid in a day. The demand-supply scenario turned against farmers as people didn’t have cash to buy their fast perishing farm produce.

Hence, prices of some vegetables plummeted by 60 per cent between July 2016 and April 2017, further aggravating agrarian crisis.

The average price of onion has dropped by 21 per cent, potato dropped by 60 per cent, tomato dropped by 55 per cent and garlic’s price dipped by 50 per cent since July 2016. (See tables below). Prices of pulses like pigeon peas dipped by more than 40 per cent in different markets across the country.

Onion (Rs/quintal)
Time period

Mini.

Max price

Av. price

Difference%

July, 2016

590

1,035

844



April, 2017

492

794

666

-21%



Potato (Rs/quintal)
Time period

Mini.

Max price

Av. price

Difference %

July, 2016

1,199

1,551

1,381



April, 2017

436

676

556

-60%



Tomato (Rs/quintal)
Time period

Mini.

Max price

Av. Price

Difference

July, 2016

1,279

2,138

1,878



April, 2017

644

1,017

844

-55%



Garlic (Rs/quintal)
Time period

Mini. price

Max price

Av. price

Difference

July, 2016

5,714

10,803

7,484



April, 2017

2,767

4,577

3,694

-50%

Comments

Popular posts from this blog

Indian Polity Elections (MCQ )

1. Who of the following has the responsibility of the registration of voters
a) Individual voters
b) Government
c) Election commission
d) Corporations


2. Democracy exists in India, without peoples participation and co operation democracy will fail. This implies that
a) Government should compel people to participate and cooperate with it
b) People from the government
c) People should participate and cooperate with the government
d) India should opt for the presidential system


3. Which of the following are not the functions of the election commission
1) Conduct of election for the post of the speaker and the deputy speaker, Lok sabha and the deputy chairman, Rajya sabha
2) Conduct of elections to the state legislative assemblies
3) Deciding on all doubts and disputes arising out of elections

a) 1 and 2
b) 1 and 3
c) 2 and 3
d) 2

4. Which of the following electoral systems have not been adopted for various elections in India
1) System of direct elections on the basis of adult suffrage
2…

El Nino may make a comeback in 2017, but unlikely to affect southwest monsoon (downtoearth,)

In 2016, the world witnessed the strongest El Nino on record, which resulted in above average temperatures. The year experiences record-breaking heat for nine consecutive months. It had also ruined the Indian monsoon for two years. After two successive droughts in 2014 and 2015, last year witnessed erratic rainfall both in terms of geographical spread and time. Thanks to El Nino, the southwest monsoon in 2014 and 2015 witnessed a deficit of 11 and 14 per cent respectively.

While the 2016 monsoon season in India saw 97 per cent rainfall, it was far less than the 106 per cent that the India Meteorological Department (IMD) had forecast in July. The lesser-than-expected rainfall, especially in the second half of the monsoon season, has been attributed to the absence of a strong La Nina phenomenon in the equatorial Pacific Ocean that is known to help the Indian monsoon.

According to a recent forecast by the National Oceanic and Atmospheric Administration (NOAA), there’s a 50 per cent chan…

Current Affairs MCQ for UPSC Exams – 21 December 2016

Q.1- Which of the following is/are correct regarding Nirbhaya missile?

1. It is a cruise missile
2. It is hypersonic in speed
A. 1 only
B. 2 only
C. Both
D. None

Q.2- Khanjar-III is military exercise between which of the following countries?

A. India and Russia
B. Russia and China
C. India and Kyrgyzstan
D. Russia and Afghanistan

Q.3- UPI has been in news recently, what is the full form of UPI?

A. Unified Payment Interchange
B. Unified Payment Interface
C. Unified process interchange
D. Unified process interface
 .
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
Answer  1-A, 2 -C, 3-B