Food prices double in UPA’s term

Discussion in 'Economy & Infrastructure' started by Galaxy, May 16, 2012.

  1. Galaxy

    Galaxy Elite Member Elite Member

    Joined:
    Aug 27, 2011
    Messages:
    7,093
    Likes Received:
    3,895
    Location:
    Delhi
    Food prices double in UPA’s term

    May 16, 2012

    NEW DELHI: If inflation has broken the back of the aam aadmi, the biggest contributor to the pain in the UPA's term is food prices.

    Government data on wholesale price index (WPI) shows that there has been a 63% increase in the price of all commodities between April 2004, a month before UPA took charge, and April 2012, the latest period for which data is available. But when it comes to food products, the index has more than doubled from 98 to 206.4. So, you are now spending at least twice the amount you spent in April 2004 just to meet your basic consumption needs.

    Of the 60-odd items analyzed by TOI and Crisil, there is just one case - ginger - where the price has decreased, going by the index. In all other cases, there has been an increase. Within these commodities, there are only eight products - guava, coconut, garlic, papaya, onions, turmeric, tea and chicken - where the rise in prices is less than 63%.

    The spurt in food prices is mainly due to demand outstripping supply as productivity has remained stagnant for most of the commodities.

    For households, especially the poor, food inflation can have the most damaging impact, given that a bulk of spending in the lower income strata is on this segment. While the poor can draw some comfort from the fact that cereal prices are not among the commodities which have seen the maximum jump, the overall increase is still over 90% with wheat and rice, on an average, seeing over 80% increase.

    While protein-rich items such as milk, egg, meat and fish have seen prices more than double, it is vegetables that have caused the maximum dent to the housewife's monthly budget. This segment has seen a 171% jump. So, if you spent Rs 3,000 a month on vegetables seven years ago, you would now be spending over Rs 5,000. Given that cabbage now costs six-and-a-half times more than April 2004, you can draw comfort from the fact that during this period, potato and brinjal prices have only gone up by 111% and 140%, respectively. Similarly, bhindi now costs four-and-a-half times more.

    Even fruits have seen a lower spurt of around 90% with prices of mangoes, oranges, apples and pineapple more than doubling. When it comes to spices, black pepper has seen the biggest jump (335%). Coffee makes up the top five commodities in terms of price rise with an increase of 269%.

    [​IMG]

    Food prices double in UPA's term
     
  2.  
  3. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,274
    Likes Received:
    11,283
    Location:
    BANGalore
    Discussed this before. The high food prices are a global phenomenon. India is just part of the overall worldwide high food prices.
     
    Blackwater likes this.
  4. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,274
    Likes Received:
    11,283
    Location:
    BANGalore
    After a 40% rise in global prices over the past year, droughts and floods threaten to seriously damage this year's harvest

    Food prices will soar by as much as 30% over the next 10 years, the United Nations and Organisation for Economic Co-operation and Development have predicted.

    Angel Gurría, secretary-general of the OECD, said that any further increase in global food prices, which have risen by 40% over the past year, will have a "devastating" impact on the world's poor and is likely to lead to political unrest, famine and starvation. "People are going to be forced either to eat less or find other sources of income."

    The joint UN Food and Agriculture Organisation (FAO) and OECD report predicted that the cost of cereals is likely to increase by 20% and the price of meat, particularly chicken, may soar by up to 30%.

    World food prices are already at a near-record high as droughts and floods threaten to seriously damage this year's harvest. The report said the global harvest is in a "critical" condition and warned that prices will continue to rise until depleted stocks are rebuilt.

    Global food prices hit a record high in February, prompting demonstrations across the world. The last extreme food price rise in 2008 led to riots in 20 countries across three continents.

    Gurría called on world leaders to ban speculators from pushing up food prices. The G20 will meet in Paris next week to thrash out a deal aimed at imposing strict rules on trading in food commodities and policies that distort global food market.

    French president Nicolas Sarkozy has repeatedly attacked hedge funds and specialised financial institutions for pushing up food prices. "Speculation, panic and lack of transparency have seen prices soaring," he said. "Is that the world we want? France is saying quite clearly it is not."

    He compared the lack of regulation on food price speculators to lax regulation that drove financial markets to the "edge of the abyss" during the 2008 financial crisis.

    The report predicted global agricultural production would grow at an annual rate of 1.7% a year over the next decade, compared with 2.6% the past 10 years. "Slower growth is expected for most crops, especially oilseeds and coarse grains," it said. "The global slowdown in projected yield improvements of important crops will continue to exert pressure on international prices."

    The slowdown in production comes as new forecasts predict the global population will climb to 9.2 billion by 2050, compared with the current level of 6.9 billion. The FAO said agricultural production would have to increase by 70% to match the expected increase.

    Meat exports are expected to rise by only 1.7% by 2021, compared with a 4.4% increase over the previous decade. In contrast, fish production is expected to increase by 14.7% over the same period. Most of this will come from fish farms, which are due to overtake open sea fishing by 2015.

    Food price explosion 'will devastate the world's poor' | Environment | The Guardian
     
  5. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    That we are getting food itself is a miracle.

    Something Is Rotten
    The poor stare vacantly as a food-surplus nation lets its stock spoil in the open


    [​IMG]

    Systemic Failure

    Despite record procurement, poor storage has led to a criminal waste of grain
    61,000 tonnes of grain rotted as it was left in the open during the monsoon
    The FCI had shut down storage facilities after low procurement in 2006-07
    The plan for decentralised storage facilities is 40 years old. It’s still hanging fire.
    EGoM did not clear the surplus grains for the PDS since it would have added Rs 5,000 crore to the food subsidy bill

    Something Is Rotten | Anuradha Raman
     
    Galaxy likes this.
  6. Blackwater

    Blackwater Veteran Member Veteran Member

    Joined:
    Jan 9, 2012
    Messages:
    20,983
    Likes Received:
    11,812
    Location:
    Akhand Bharat

    sometimes u talk sense
     
  7. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    Why does the Food Price discussion keeps cropping up?

    Because, it keeps reaching a new high.

    If it stops reaching a new high every now and then, then none will discuss it.

    Veggie prices surge 61%, fuel 7.2% inflation in April
    Veggie prices surge 61%, fuel 7.2% inflation in April - The Times of India

    Rise in prices affect the salaried class or the fixed income class.

    Those who have professions that are consumer based, doctors,lawyers etc or businessmen are not seriously affected, since they will increase their clientèle and fleece them to make the difference in cash so that their lifestyle remains the same.
     
  8. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,274
    Likes Received:
    11,283
    Location:
    BANGalore
    What also needs to be discussed is by how much salaries and incomes of the people have gone up. how may are better off than they were in 2004 or worse off. GDP has almost doubled since 2004.
     
  9. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    If what the pittance the Govt gives even after the so called salary hike is enough to keep the home fires burning with the food inflation, then that would have made the day for many.

    One cannot eat GDP. It is fine for businesses.

    What one is interested is the PPP and what the good old :inr: can fetch.

    The Govt is merely on populism while the real issues are not addressed.

    If foodgrains did not rot, then maybe something would be affordable.

    Then there is no scientific farming advised so that it meets the need of farmers as also the anticipated requirement of the nation.

    There is a potato glut in Bengal, but there is no storage facility.

    In Midnapore, people are converting farmland to spawn prawns and shrimps and the salinity has reduced paddy yields!

    In India, the approach is Jo ho, so ho and Jaisa kam, waisa daam!

    Bur then why should the Ministers or MPs bother? They are the real Commandos of India - living off the land!
     
    Last edited: May 16, 2012
  10. sob

    sob Moderator Moderator

    Joined:
    May 4, 2009
    Messages:
    6,359
    Likes Received:
    3,661
    Location:
    New Delhi
    This is a systematic fallout of the wrong policies of the GOI. With the agricultural sector growing at less than or equal to 3% while the overall economy growing at around 8 to9 % this was bound to happen.

    If you compare countries like Vietnam there the food inflation has actually fallen due to high growth in Agricultural output and increased exports of food grain. Due to our misplaced policies we export food grains when the global prices are depressed and we buy foodgrain when the global prices are at an all time high.

    There have been no attempts by the Central Govt. to focus on agriculture growth. Decisions on agriculture have always been linked to the electoral situation. We have a situation wherein MSP for Wheat, sugarcane and cotton has been increased with a view of the electoral votebank politics and there is no policy of increasing the production of vegetables whose prices have been going through the roof.

    Yususf: as India is neither a big time importer of food grains nor a major exporter, the global prices have no role to play in our case. This is just a fig leaf to cover for our own deficiencies. We should stop looking for excuses and work for a long term solution.
     
  11. sob

    sob Moderator Moderator

    Joined:
    May 4, 2009
    Messages:
    6,359
    Likes Received:
    3,661
    Location:
    New Delhi
    GDP growth and the rise in income levels is very skewed. The income disparity has been increasing at a very large level.

    Again the same problem is there, there has been no improvement in the supply side and then we blame the increase in consumption for high prices.
     
  12. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,274
    Likes Received:
    11,283
    Location:
    BANGalore
    Sob, high prices of food has to be seen from various angles. One of them is high fuel prices.

    1) Higher costs of irrigation using pumps and generators. Higher costs for using tractors etc.
    2) Higher transportation costs
    3) Consumption has certainly increased
    4) Margins taken by traders in the business. (margin taken by traders increases as they too have to keep up with increase in overall costs of living)
     
  13. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    The items mentioned work on diesel.

    How much has been the rise of cost of diesel?

    And how much has been the rise of cost of food?

    Compare the %
     
  14. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,274
    Likes Received:
    11,283
    Location:
    BANGalore
    In 2004 crude oil price was around $34 a barrel and diesel price in India at that time was Rs. 22 a ltr.
    Right now crude is over $100 a barrel and though subsidized, diesel is at 45 i think. double of what it was in 2004.

    What percentage constitutes cost i dont know. Like i said, it constitutes part of the costs that go into agriculture production and distribution.
     
  15. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

    Joined:
    Aug 15, 2010
    Messages:
    3,884
    Likes Received:
    1,568
    Location:
    Hyderabad, Andhra Pradesh(INDIA)
    Yusuf bhai in the year 2002 the cost of diesel was Rs 13 a ltr. I was living at Ooty and this was the rate then and petrol was around Rs 30-35 a ltr. The year 2002 was when I bought my bike.
     
  16. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

    Joined:
    Aug 15, 2010
    Messages:
    3,884
    Likes Received:
    1,568
    Location:
    Hyderabad, Andhra Pradesh(INDIA)
    The price of petrol and diesel when compared to our neighboring countries like pakistan and Sri Lanka is high by rupees 10-15, this is when compared to the deference in our currency and their currency. If I am wrong please correct me.
     
  17. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    How compare that with petrol.

    And then talk about hikes.

    The compare the prices of goods and edible products and its shooting sky high.

    You may like not to believe govt propaganda for a change.
     
  18. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    Veggie prices surge 61%, fuel 7.2% inflation in April

    Does this not ring a bell?
     
  19. cir

    cir Senior Member Senior Member

    Joined:
    Dec 28, 2010
    Messages:
    1,996
    Likes Received:
    269
    The falling currency is a major concern,especially for a country like India which imports far more than it exports。

    Indian rupee hits record low; more falls seen

    MUMBAI | Wed May 16, 2012 12:31pm IST

    MUMBAI May 16 (Reuters) - The Indian rupee hit a record low against the dollar on Wednesday, succumbing to the steep risk aversion hitting global markets and highlighting the vulnerabilities of a country facing challenging fiscal and economic outlooks.

    UPDATE 1-Indian rupee hits record low; more falls seen | Reuters
     
  20. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    Yusuf

    Jus tot help you

    NEW DELHI: Soaring vegetable prices pushed inflation higher in April, while fuel and manufactured product prices sustained their pressure posing a fresh policy challenge and announcing the return of price pressures in Asia's third-largest economy.

    Data released by the commerce & industry ministry on Monday showed the annual rate of inflation, based on monthly wholesale price index, stood at 7.23% for April, 2012, compared to 6.89% for the previous month and 9.74% during the corresponding month of the previous year.

    Food inflation remained stubborn during the month. It stood at 10.49% compared to the previous month's 9.94% increase. This was the first time in six months that food inflation has breached the double-digit mark.

    Vegetable prices, which had shown some signs of easing in the previous months, shot up an annual 60.97% in April compared to a 30.57% rise in March, while potato prices rose 53.44% year-on-year in April from the previous month's 11.60%. Price of pulses also shot up an annual 11.29% in April from the previous month's 10.05%. Egg, meat, fish and milk prices also remained stubborn in April.

    ****************


    You may like to reconcile this:

    Soaring vegetable prices pushed inflation higher in April, while fuel and manufactured product prices sustained their pressure

    As I understand, FUEL is not buckled to pressure and is STEADY.

    If so how is it that DIESEL has shot up the prices even if it was steady as a rock?

    It is like blaming the Chief for the leak of the 'ctritical deficieny' letter, when it was leaked by the Prime Minister's hand picked lot!
     
    Last edited: May 16, 2012
  21. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,545
    Location:
    Somewhere
    and how is this connected?

    Do let us know?

    Are we importing food and vegetables?

    Next you will claim it is all because of the famine conditions in China!!
     

Share This Page