Rising prices write an article on it
Answers
Introduction:
Food prices have been on the rise and have become a global issue. Prices have soared over the past year and a half and threaten to go up further if issues are not addressed immediately. Below is a look at how prices have been over the past year. Figure 1. FAO Food Price Index: February 2007 - January 2008
Source FAO, 2008
In this project, we attempt to find out the causes for this price rise, the trends of the rise and the effects that this rise has had on us.
Causes:
1. High demand for food in developing countries:
The growing world population is demanding more and different kinds of food. Rapid economic growth in many developing countries has pushed up consumers' purchasing power, generated…show more content…
Drought has already led to significant changes in Australia's agricultural trends. Some farmers are abandoning rice, which requires large amounts of water, to plant less water-intensive crops like wheat or, especially in southeastern Australia, wine grapes. Other rice farmers have sold their fields or their water rights, usually to grape growers.
Scientists and economists worry that the reallocation of scarce water resources — away from rice and other grains and toward more lucrative crops and livestock — threatens poor countries that import rice as a dietary staple. As we see in this data, since grape production gives the farmers more profit they are turning to grape production instead of rice. Things like this are causing rice prices to go up tremendously.
Even with the recent doubling of rice prices, to around $1,000 a metric ton for the high grades produced by Australia, it is even more profitable to grow wine grapes.
3. Rise in oil prices and effect on food prices
Oil prices have risen exponentially in the last few years and this has had a tremendous effect on the food prices. Oil prices have increased by more than 4 times in the last 6 years. This means that it costs four-times as much to plant, irrigate, harvest and transport as it was six years ago.
Answer:
The rapid increase in prices is causing anxiety amongst the people of India. Price rise is a world wide phenomenon and India is no exception. Prices of everything are sky rocketing, even of the essential commodities like gas, pulses, sugar, edible oils, tea, food grains, petrol, etc.
Economists have pointed out that factors, such as increase in disposable income, consumer spending, public expenditure, black money, etc. are responsible for exceeding demand. Similarly there are certain factors, such as less or slow production, natural calamities, artificial scarcities increase in export, etc., which are responsible for shortage of supply
Price-rise affects different people differently. Although it may not have much affect on the flexible income group. However, maximum hardship is faced by those belonging to the fixed income group. It is so because their salaries and wages remain the same but the prices of goods and services continue to rise
In order to curb the problem of price rise it should be the joint effort of the government and the public to control it. There should be more fair price shops, Kendriya Bhandar, Safal outlets, etc. where the common man can shop for quality goods at a nominal price
The Government and banks must keep a check on hoarding and black marketing and also stop repayment of public debt until price-rise is controlled within the economy.
As far as general public is concerned, they must reduce unnecessary expenditure and increase savings. This will reduce disposable income with the people and hence personal consumption expenditure.
In conclusion, it is evident that price-rise is a multi-headed monster, which must be defeated on time with proper measures to benefit not just the rich population, but the poor also.
Pls mark as brainliest if it is...