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Economy2011
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
  2. As a consequence of increasing incomes, the consu-
  3. The food supply chain has structural constraints.
Which of the statements given above are correct?

Explanation

The correct option is 2 and 3 only because statement 1 inaccurately depicts the trends in agricultural cultivation. While the shift towards commercial crops can impact food grain production, reports indicate that the area under food grain cultivation has not drastically decreased. However, rising incomes (statement 2) lead to changing dietary preferences, increasing demand for diverse and often more expensive food items, thereby contributing to inflation. Structural constraints in the food supply chain (statement 3), such as inadequate infrastructure, storage issues, and inefficient logistics, hinder the timely and efficient distribution of food, exacerbating scarcity and inflationary pressures.

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