In India, that usually holds buffer stocks of food supplies for the last two decades, after intermittent periods of shortages of food items and importing food items to meet the shortfalls before, has become self-reliant by implementing aggressive agricultural policies and modern agricultural methods. But the worst droughts that hit India in 2009, and followed by unexpected rains after the usual monsoon periods, which the climatologists claim is due to severe climate changes due to global warming, have brought down food production drastically.
Prices of food items in India have gone up by 19 per cent from the prices a year ago, as per government sources and other economic indexes, stung by supply crunch in staple items following one of the worst droughts in the last 40 years. The wholesale price index-based inflation figure has jumped 19.05 per cent for the week ended November 28 from the figures a year ago. The real implication is that the retail prices at which the households purchase food items tend to be much higher, adding the middlemen’s profits, retailers’ profits and other incidentals till the food stocks reach from the wholesaler to the retailers. Add to this the artificial shortages and subsequent price hikes due to hoarding and black marketing by unscrupulous traders at various levels, extending up to the retailers at the times of shortages, a usual practice to cash in on the common man’s woes.
Significantly, prices of staples such as potatoes have more than doubled from the prices a year ago, while the prices of pulses have gone up over 42 per cent hitting hundreds of millions of people. The rise in price of potatoes has gone up over 102 per cent, vegetables 31 per cent, onions 23 per cent, cereals 12.8 per cent, wheat 12.6 percent, fruits 12.5 per cent, and milk by 12 per cent. Against a demand of 18 million tons of pulses, the production was only 14.8 million tons. Against a demand of 23 million tons, the production of sugar was only 16 million tons. And the story is no better in the case of most other key items of food items from the agricultural sector.
As a knee-jerk reaction to the increase in prices, the government may be forced to import food supplies such as pulses and sugar to control prices. A natural fallout of the fluctuations in the food items market is that it has a tendency to pull down the prices of manufactured products because wages and input prices go up and excessive spending to pay for food at very high prices make little money left with consumers of low and middle income households to buy manufactured items. It will have a long-term effect in the cases of industrial sector, especially automobiles and most consumer durables that have registered exceptional growth in 2009, despite the global recession.
The Reserve Bank of India (RBI), which is the central bank of India studying statistical trends and suggesting regulatory measures for the central government, has forecast that by the end of the year the inflation will accelerate to 6.5 percent by the end of the fiscal year in March 2010.
India has been experiencing unusual climate conditions for the past several years, especially either very low precipitations in the months of the sowing of crops and sometimes by floods or unwelcome rainfalls at the time of harvesting. The result is a two-fold loss to the farmers; crops cannot be planted due to very dry climates and whatever is planted cannot grow healthy due to adverse climate and whatever crops are ready are destroyed by untimely rains and floods.
Farmers who suffer heavy losses depend on the weather gods for their farming, as most of them depend on natural conditions, with a very small percentage depending on irrigation from dams and other organized irrigation systems. In addition, the ever-worsening groundwater depletion over the years has made tube well irrigation too inefficient. The drying up of rivers in the Gangetic plains, which were perennially fed by the Himalayan glaciers are a cause of big concern as the glaciers have receded several kilometers away from the sources of the rivers that traditionally used to irrigate the northern plains that used to be the major food-producing region of India.



