Question

Sudden increase in price of particular food item ? what are it causes and solution.

Answer 1

The reasons behind in price rise for food items are as under:
1.Demand outpaced supply.
2.Less rainfall and prolonged droughts which gave rise to bad harvests also played a role in price rise of crops.
3.Disease in the crops also stressed the supply side which in turn raised food crops.
4.Rising living standards led to increase in demand in improved diets.
5.Fuel and fertilizer costs also increased food prices.
The solution for curbing food prices can be as under:
1.Irrigation facilities has to be improved.
2. Fertilizers have to be subsidized.
3.Buffer stocks has to be improved by constructing more and more cold stores.