This PPT is related to rising prices.

1. Food
Rising Prices
Prepared By -:
ParminderJIt Kaur
BS13MAEC003
1St Sem.
PARMINDERJEET KAUR
BS13MAEC003
M.A. Economics – 1st Sem.

2. Food inflation -:Methods to measure , Trends
 Reasons and Impacts
Methods to control Food Inflation
Food security - : Need and India ‘ s food security
Govt. Schemes
PDS - : Benefits and Problems

3. Food inflation
Consistent rise
in price level .
Rise is neither
seasonal nor
sudden.

4. Methods of Measurement
A . Change in Price Index- :
2. Wholesale Price Index (WPI)
B . Gross National Product (GNP Deflator)

5. Food inflation ( Skyrocketing Prices )
Item
2004
2008
2010
Wheat
9
20
29
Rice
10
22
48
Sugar
14
20
50
Edible oil
40
95
100
Dalda
40
72
85
Channa dal
25
40
56
Mung dal
24
48
100
Besan
20
48
60
Milk
14
20
30
Caro sine oil
18
35
35
Increase in Wheat price is not good.

6. Current prices in Delhi
commodity
Price (rs. )
Range
Milk
35.00
30-40
Loaf of fresh bread
(500g)
22.00
20-27
Rice (1 kg)
44.00
37-50
Local cheese(1kg)
220
180-300
Chicken
180
150-220
Apples
120
100-150
Oranges
70
50-100
Tomato
30
20-40
Potato
20
15.81-30
Lettuce(1 head)
20
20-40

7. Recommended minimum amount (2000kalories )
commodity
Quantity
Price (rs. )
Milk
0.25 liter
8.75
Loaf of fresh bread
130 gm.
5.72
Rice
0.13kg
5.72
Local cheese
0.15kg
35.00
Chicken
0.25kg
45.00
Apples
0.34kg
40.80
Oranges
0.34kg
23.80
Tomato
0.21kg
6.30
Potato
0.25kg
5.00
Lettuce
0.15head
3.75
Eggs
3.60
14.40
Daily expense = 192.24 rs.
Monthly expense = 5,959.44 rs.

12. Retail prices of commodities in
Delhi (2009-2012)
Item
2012
2011
2010
2009
Rice
23
23
22
17
Wheat
15.5
16
13
13
Atta
17
18
14
14
Channa dal
35
38
35
35
Arhar dal
69
84
50
42
Moong dal
68
81
45
36
Masoor dal
54
62
62
39
Sugar
34
42.5
23
17
Milk
25
22
21
20
Groundnut oil
135
113
109
121
Mustard oil
79
71
77
69
Vanaspati
77
57
54
67

13. Cont.
Tea loose
149
156
144
107
Salt pack
13
12
11
10
Potato
10
9
8
8
Onion
33
23
21
9
 Increase in basic necessities of life make survival difficult.

14. Food Inflation
Year
Inflation rate
2005-06
4.83
2006-07
7.78
2007-08
5.46
2008-09
8.01
2009-10
14.72
2010-11
15.78
2011-12
7.27
2012-13
14.3
10 % increase is unpleasant for any economy

16. Factors for rising prices
1) Decrease in Production
2) Minimum Support Price
3) Government policies
4) Substitute product
5) Demand/consumption
6) Seasonal Cycles
7) International prices
8) Hoarding

17. Impacts of Food Inflation
Low
purchasing
power of
common man .
Corruption in
PDS shops.
Low income
growth .

19. Measures to Control Food
Inflation
Increase in
Production
provision of
Subsidies .
Proper
commercial
policies
Ban on Exports.
Encouragement
to savings.

20. Food security

36. Conclusion
Need of
Immediate
action
Passing of
Food Security
Bill can help .
Corruption in
PDS system
due to
Political
Intervention .

37. • Food security
• No hoarding
• Increase in production