The main reasons for food wastage are inappropriate technology, transportation and storage. However, improved post harvest infrastructure and food processing industry could work wonders.
Recent studies reveal, the Median Inflation Rate in South Asia is more than twice that of Latin America and the Caribbean. The primary cause is the increased consumption of protein and its weak supply response. Also, export of animal fodder despite of its shortage has led to increased milk prices.
However, the good news is that food inflation rates in India have significantly dropped from 9.47 per cent to 8.84 per cent. Also, the percentage rise of the prices of vegetables and onions has declined.
Now, the main problem faced by the government is while setting prices. If the Minimum Support Price is higher than the Market price it will help the farmers but at the same time burden the general public. Similarly, a lower price would result in a fiscal deficit.
