GyanGramIndia has experienced persistent and high food inflation in the recent past. What could be the reason? 1. Due…
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India has experienced persistent and high food inflation in the recent past. What could be the reason?
1. Due to a gradual switchover to the cultivation of commercial crops, the area under 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?
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• Correct Answer: B
• Rising incomes shift demand toward protein-rich foods, exerting price pressure.
• Structural supply chain constraints (cold storage gaps, transport inefficiencies) worsen inflation. Foodgrain area has not fallen 30%.
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