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Food-Price Inflation in India UPSC NOTE


  • India is experiencing accelerating food-price inflation, with a significant rise in the price of food observed since 2019.

  • In July of the current year, annual food inflation exceeded 11%, marking the highest level in a decade.

  • The rise in food prices can lead to hardship for a portion of the population in accessing nutritionally adequate food.

Concerning Findings:

  • The Food and Agriculture Organization (FAO) estimates that in 2021, approximately 74% of India's population cannot afford a healthy diet, affecting about one billion people.

  • Studies in India suggest a reduction in purchasing power due to rising food prices, impacting food consumption and contributing to the prevalence of issues like anaemia, primarily caused by nutrient deficiency.

Importance of Addressing the Issue:

  • Ensuring access to a healthy diet for all Indians is a critical economic policy goal.

  • Traditional macroeconomic policies have proven ineffective in controlling food inflation, necessitating interventions on the supply side.

  • Central banks, like the Reserve Bank of India, have limitations in managing food inflation originating from supply-side factors.

Role of the Green Revolution:

  • India's historical experience with the Green Revolution in the 1960s is a significant example of a successful supply-side response to food scarcity.

  • The Green Revolution focused on providing farmers with high-yielding seeds, credit, and assured prices through procurement, making India self-sufficient in food production.

Need for a Second Agricultural Revolution:

  • A second agricultural revolution is required to lower the cost of food production and contain rising food prices.

  • Initiatives include increasing agricultural yield, expanding irrigation, removing land leasing restrictions, revitalizing agricultural research, and re-establishing extension services.

Crucial Role of States:

  • States play a crucial role in implementing these initiatives, and cooperative federalism between the central and state governments is essential.

  • A non-ideological approach, similar to the capitalist approach adopted during the first Green Revolution, should be pursued to address food-price inflation and ensure access to healthy diets for all Indians.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Food-Price Inflation in India UPSC NOTE
Food-Price Inflation in India UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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