Step to reduce hike in price
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India could wipe out $49 billion from its GDP if global food prices double, says new research by the United Nations Environment Programme (UNEP) and the Global Footprint Network. China could lose $161billion in GDP. The two countries will be the worst affected among 110 countries in terms of absolute loss of GDP.
The next global food shock will be created by the lethal combination of rising consumer demand and fluctuating supply, thanks to climate change, water scarcity and environmental degradation. And it will likely result in India’s GDP dropping 2.4%, the consumer price index (CPI) rising 13.8% and the sovereign credit rating plummeting by three notches, the report says.

Runaway food inflation will force households to spend even more on food from the present 44% of their income. Imported food staples will become expensive, distorting the trade balance.
Government subsidies to make food affordable will widen the budget deficit. Together, these will emerge as material risks to our creditworthiness.
The UNEP study underlines two facts. One, food inflation has the potential to sink the entire economy. Second, India and China are enormous players within the global food system, accounting for more than a third of the world cereal, cooking oil, soya bean, sugar and meat consumption. This means that the biggest threat could be brewing at home and not overseas.
India’s average food inflation during 2006-13 was one of the highest among emerging market economies, and nearly double the inflation we saw during the previous decade. Indeed, food inflation beat non-food inflation by about 3.5 percentage points on average during 2006-13. Higher incomes have increased consumer demand.
But inflation is also the result of inefficiencies in the food supply chain: agriculture, the food processing industry and the food wholesale and retail distribution sectors.
The next global food shock will be created by the lethal combination of rising consumer demand and fluctuating supply, thanks to climate change, water scarcity and environmental degradation. And it will likely result in India’s GDP dropping 2.4%, the consumer price index (CPI) rising 13.8% and the sovereign credit rating plummeting by three notches, the report says.

Runaway food inflation will force households to spend even more on food from the present 44% of their income. Imported food staples will become expensive, distorting the trade balance.
Government subsidies to make food affordable will widen the budget deficit. Together, these will emerge as material risks to our creditworthiness.
The UNEP study underlines two facts. One, food inflation has the potential to sink the entire economy. Second, India and China are enormous players within the global food system, accounting for more than a third of the world cereal, cooking oil, soya bean, sugar and meat consumption. This means that the biggest threat could be brewing at home and not overseas.
India’s average food inflation during 2006-13 was one of the highest among emerging market economies, and nearly double the inflation we saw during the previous decade. Indeed, food inflation beat non-food inflation by about 3.5 percentage points on average during 2006-13. Higher incomes have increased consumer demand.
But inflation is also the result of inefficiencies in the food supply chain: agriculture, the food processing industry and the food wholesale and retail distribution sectors.
sunnyleone8:
hello dear
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Selling at a lower price often increases your sales volume, hopefully making up for your decreased profit per unit by returning bigger gross profits. ... In a best-case scenario, a price increase creates enough perceived value among consumers that you realize both increased profit margins and sales volumes.
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