Q. India has experienced persistent and high food inflation in the recent past. What could be the reasons?
- 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%.
- As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
- The food supply chain has structural constraints.
Which of the statements given above are correct? (UPSC Prelims 2011)
Answer:
2 and 3 only
Notes: Statement 1 is Incorrect: While there has been some shift toward commercial crops (like cotton or oilseeds), there has not been a "steady decrease of about 30%" in the area under food grain cultivation. Agricultural data from that (2010-11) period shows that the acreage for food grains remained relatively stable or saw only marginal fluctuations, certainly not a massive 30% drop.Statement 2 is Correct: As the Indian economy grew, rising rural and urban incomes led to a "dietary diversification." People moved away from simple cereals toward protein-rich foods (milk, eggs, meat) and vegetables. Since the supply of these high-value items didn't keep pace with the surging demand, prices rose significantly.Statement 3 is Correct: The food supply chain in India faces several structural issues, including inadequate cold storage, lack of processing facilities, fragmented land holdings, and a long chain of middlemen. These inefficiencies create a gap between what the farmer receives and what the consumer pays, often causing artificial scarcity and price hikes.