Introduction

Farmer Suicide

India is an agrain country which is 60% people depend upon agriculture directly and indirectly. Agriculture in india is often attributed as gambling with Monsoon because of its almost exclusive dependency on Monsoons. The failure of these monsoons leading to series of droughts, lack of better prices, exploitation by Middlemen have been leading to series of suicides committed by farmers across India. In 1990 Journalist P Sainath highlighted the farmer suicides in this report. But government tried to underplay the cases of farmer deaths, intellectual supporters of the farmers preferred to inflate them. More than 17,500 farmers a year killed themselves between 2002 and 2006, according to experts who have analyzed government statistics. The most of the states of india are that most suicides occurred in states of Andhra Pradesh, Maharashtra, Karnataka, Kerala and Punjab.

Food Inflation

It means a high increase in food prices due to high demand and inadequate supply. Food inflation can be defined as a consistent rise in the price level of all agricultural food items. This rise in price level is neither seasonal nor sudden, it keeps on increasing over a period of time. This is one of the biggest problem faced by the economy.

CAUSES OF HIGH FOOD PRICES AND FOOD INFLATION

Prices of close substitutes for rice are rising sharply as well: wheat, maize, and soybeans are all at record highs. Three sets of factors must be taken into account in order to explain what is happening to food prices in developing Asia. First is the distinction between structural and cyclical factors; second is the distinction between supply and demand; and third is the relationship between international and domestic markets. Natural Causes High Cost of Input Hording & Black Marketing Low Productivity Non-availability of high yield seeds at low price

Solution Of Food Inflation

Improvements in supply chain. Public distribution system. Adoption of new technology. Increase in farm productivity. Lower the cost of inputs. Increase the share of irrigated land.

Measures to control food inflation

Monetary Measures: Monetary measures relate to the control in the supply and circulation of money in the country. Bank rate policy: Bank rate can be used to control Inflation. Bank rate in the economy affects the rate of interest in case of inflation, the bank rate is increased; it leads to increases in rate of interest and hence the supply of money is controlled. Open market operation: During inflation, the central bank sells govt. securities and price bonds in the open market in order to contract the supply of money. So the aggregate prices will grow less than before and it will help in controlling the money supply. Variable reserve ratio: In order to control inflation, the central bank increases the reservation. By doing so, Banks will have to keep more deposits with central bank and hence money supply in the economy will get reduced. Credit Rationing: When there is inflationary pressure, the state bank adopts the policy of credit rationing.

Inflation

Inflation is a rise in the general level of prices of goods and services over time. "Inflation" is used to refer to a rise in the prices of some specific set of goods or services, as in "commodities inflations.

Causes of Inflation

EXTREME IMBALANCE OF GLOBAL ECONOMY FUEL PRICE HIKE HIGHER INTERNATIONAL FARM PRICES FOOD PRICE HIKE

Review of Literature
(Acharya K.C.S. 1983) Historical evolution of food security and evaluation of the concept of buffer stock policy and itsimplications, have been by some studies covered various issues relating to provision of food security ssystem in India.

(Mellor, J.W., 1983) Effective demand for food can grow at a rate that can keep pace with population growth. As percapita income rises, population growth also increases. Rising incomes combined with increasing population lead to high demand for food grains, particularly demand for livestock product. In this context food supply has to take a quantitative jump and in addition to increasing domestic food supply, food imports may also become necessary.

(Kumar, Rosengrant, 1994, and Bouis) Four alternative scenario based on four different assumptions about growth of the GDP and the percapita income and further uses four alternative demand models to derive demand elasticities and demand projections for food grains-for the year 2000 and 2010 was worked by Som Schlores.

Bibliography

The Hindu-December 2010 column Rediff News Planning Commission report "Farm suicides worse after 2001 study". The Hindu. Nov 13, 2007.. "Farmers suicides in India not due to Bt cotton: IFFRI". Mint (newspaper). Nov 11 2008. "Farmer's Suicides". Z Magazine. "Indian Farmer's Final Solution". countercurrents.org. "Rough Cut Seeds of Suicide India's desperate farmers". PBS Frontline. 26 July 2005. P. Sainath (August 2004). "Seeds of suicide I I". InfoChange News and Features.

Seeds of Suicide: India's desperate farmers from the Public Broadcasting Service Guillaume P. Grure, Purvi Mehta-Bhatt and Debdatta Sengupta (2008). "Bt Cotton and Farmer Suicides in India: Reviewing the Evidence". International Food Policy Research Institute.

Farmer Suicides & Food Inflation

Submitted To:
Miss. Jatinder Kaur

Submitted By:
Harish Kumar