India has experienced persistent and high food inflation in the recent past. What could be the reasons

2011

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.

(a)

1 and 2 only

(b)

2 and 3 only

(c)

1 and 3 only

(d)

1, 2 and 3

Answer:

(b)

Core Books/NCERT

Explanation

Statement 1 is not correct: The area under food grain cultivation decreased around 4-5%, not 30%. Statement 2 is correct: Increased incomes led to higher demand for food grains. Statement 3 is correct: Structural constraints in the food supply chain contributed to inflation.