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Food
Rising Prices
Prepared By -:
ParminderJIt Kaur
BS13MAEC003
1St Sem.

PARMINDERJEET KAUR
BS13MAEC003
M.A. Economics – ...
Food inflation -:Methods to measure , Trends
 Reasons and Impacts
Methods to control Food Inflation
Food security - : ...
Food inflation
Consistent rise
in price level .

Rise is neither
seasonal nor
sudden.
Methods of Measurement
A . Change in Price Index- :

2. Wholesale Price Index (WPI)

B . Gross National Product (GNP Defla...
Food inflation ( Skyrocketing Prices )
Item

2004

2008

2010

Wheat

9

20

29

Rice

10

22

48

Sugar

14

20

50

Edib...
Current prices in Delhi
commodity

Price (rs. )

Range

Milk

35.00

30-40

Loaf of fresh bread
(500g)

22.00

20-27

Rice...
Recommended minimum amount (2000kalories )
commodity

Quantity

Price (rs. )

Milk

0.25 liter

8.75

Loaf of fresh bread
...
Retail prices of commodities in
Delhi (2009-2012)
Item

2012

2011

2010

2009

Rice

23

23

22

17

Wheat

15.5

16

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 b...
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

...
Factors for rising prices
1) Decrease in Production
2) Minimum Support Price
3) Government policies
4) Substitute product
...
Impacts of Food Inflation
Low
purchasing
power of
common man .

Corruption in
PDS shops.

Low income
growth .
Measures to Control Food
Inflation
Increase in
Production

provision of
Subsidies .

Proper
commercial
policies

Ban on Ex...
Food security
Conclusion

Need of
Immediate
action

Passing of
Food Security
Bill can help .

Corruption in
PDS system
due to
Political
...
• Food security
• No hoarding
• Increase in production
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
Food rising prices and Food secutity
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Transcript of "Food rising prices and Food secutity"

  1. 1. Food Rising Prices Prepared By -: ParminderJIt Kaur BS13MAEC003 1St Sem. PARMINDERJEET KAUR BS13MAEC003 M.A. Economics – 1st Sem.
  2. 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. 3. Food inflation Consistent rise in price level . Rise is neither seasonal nor sudden.
  4. 4. Methods of Measurement A . Change in Price Index- : 2. Wholesale Price Index (WPI) B . Gross National Product (GNP Deflator)
  5. 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. 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. 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.
  8. 8. 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
  9. 9. 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.
  10. 10. 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
  11. 11. 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
  12. 12. Impacts of Food Inflation Low purchasing power of common man . Corruption in PDS shops. Low income growth .
  13. 13. Measures to Control Food Inflation Increase in Production provision of Subsidies . Proper commercial policies Ban on Exports. Encouragement to savings.
  14. 14. Food security
  15. 15. Conclusion Need of Immediate action Passing of Food Security Bill can help . Corruption in PDS system due to Political Intervention .
  16. 16. • Food security • No hoarding • Increase in production
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