India has experienced persistent and high food inflation in the recent past. What could be the reasons?
- 1.Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
- 2.As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
- 3.The food supply chain has structural constraints
Which of the statements given above are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
▶ Answer & Explanation
Correct answer: B. 2 and 3 only
Rising incomes often lead to a shift in dietary preferences towards higher-value or diversified food products, increasing demand for these items. Structural issues within the food supply chain, such as poor logistics, inadequate storage, and distribution bottlenecks, can restrict the availability of food and contribute to price increases. While shifts to commercial crops can impact food grain area, a precise 30% decrease over five years without specific data is less definitively a primary cause of recent persistent inflation compared to demand-side changes and supply-side inefficiencies.
Source: UPSC gs1 2011