Multiple choice

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?

  1. Only 1 and 2

  2. Only 2 and 3

  3. Only 1 and 3

  4. All 1, 2 and 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The main causes of food inflation are: � Higher Food Prices worldwide � Lower agricultural growth in India compared to the much faster GDP growth � Rising percentage of Middle Class in India which is demanding increasing quantities of better quality food products � High general Inflation � Inefficiency in the Food Supply Chain � Dependence of Indian Agriculture on Monsoon

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