UPSC Prelims 2011 · Question 44 of 100
UPSC Prelims 2011 question on Food Inflation Causes
- ExamUPSC CSE
- Year2011
- PaperGeneral Studies Paper I
- SubjectInternational Relations
- TopicCurrent Affairs
- DifficultyMedium
- TypeStatement
India has experienced persistent and high food inflation in the recent past. What could be the reasons?
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct?
Show answer
Answer: B. 2 and 3 only
Verdict
Correct Answer: 2 and 3 only
Analysis
Persistent food inflation in India was mainly due to changing consumption patterns and structural problems in the food supply chain, not because of a major decline in foodgrain cultivation area.
Statement by statement
1. Area under foodgrain cultivation decreased by 30% — Incorrect
The area under foodgrain cultivation did not fall by 30%. Such a large fall would have caused a severe collapse in foodgrain production. In fact, India’s foodgrain production remained broadly stable and even reached high levels during this period.
2. Consumption patterns changed due to increasing incomes — Correct
With rising incomes, people began consuming more high-value food items such as milk, eggs, meat, fish, fruits and vegetables. Demand for these items increased faster than supply, contributing to food inflation.
3. Food supply chain has structural constraints — Correct
India’s food supply chain faces problems such as poor cold storage, inadequate transport, high wastage of perishables, multiple intermediaries and market inefficiencies. These increase the final price paid by consumers.
Extra UPSC info
Food inflation in India is often caused by supply-side bottlenecks.
Perishable items like vegetables, fruits, milk and eggs are more vulnerable to price spikes.
Reforms like e-NAM, better cold chains, food processing and storage infrastructure can help reduce inflation.
PM-Kisan SAMPADA Yojana promotes food processing and value-chain infrastructure.
Monetary policy alone is less effective against food inflation when the cause is supply shortage or logistics failure.
How to crack it
High food inflation in India was due to rising demand for high-value foods and structural supply-chain constraints. The claim of a 30% decline in foodgrain area is incorrect. Therefore, statements 2 and 3 only are correct.
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