The food prices have shot up significantly in the last couple of months and there is a 13.3% increase as compared to mid-August last year.
The government has been prompt and has reassured us that India has a huge buffer stock of 32.3 million tonnes of rice and 25.3 million tonnes of wheat. But prices have been climbing rapidly despite this, mainly because the government machinery has not moved quickly enough to release these buffer stocks in the open market. The surge in the food prices can be principally associated with the dismal monsoon this year.
The monsoon has been erratic to say the least and as expected the farmers are bearing the brunt of the monsoon’s uncertain behaviour.
In a bid to support them, SBI has announced an array of measures. These include reduction of interest rates and concession for borrowers who pay the loan within the stipulated period.
This measure should tone down the margin of the rise in food prices and also provide some respite to the farmers and in turn the consumers.
GANESH
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When food prices are soaring everywhere, the Government is providing rice, dal at 3Rs/kg and 2Rs/kg to the poor people in some states. Is it justified?? What can be the consequences of this action??
ReplyDeleteWould like to know people's views on this !!