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Tighten your belts, food inflation is here to stay for a while

Oct 30 2013, 00:34 IST
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India's food inflation has remained at elevated levels over the last four years. (AP) India's food inflation has remained at elevated levels over the last four years. (AP)
SummaryIndia's food inflation has remained at elevated levels over the last four years.

said.

Some other analysts, including DH Pai Panandikar, president of RPG Foundation, reckon that food processing needs to be promoted to reduce wastages and make farming more remunerative for farmers.

Scientific storage capacity is only 30% of the required capacity and cold storage facility is limited to only 9% of fruits and vegetables produced, according to Global AgriSystem, a noted consultancy firm specialising in agricultural market systems. Consequently, farmers get only 25-40% of the price paid by consumers for a commodity as the mark-up in the supply chain adds up to 60% and can even go up to 75%, while wastages in multiple handling by different intermediaries result in an erosion of value by 15-25%, it said.

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