Man Inflatable
Monday, August 22nd, 2011Man Inflatable
Food inflation- strategies to control
Food inflation now days have become a global phenomenon, attracting the attention of many economists, policy makers and the public in general. It has entered in to two digits in many countries. Mostly a common man is affected by it. Many governments are unable to control it. It has become a night mare for many due to increase in land values in many countries due to real estate boom where land has become a trading commodity, doing no cultivation and avoid risks concerned to it. Further man power has become very costly. Besides some people have shifted to commercial crops to get more benefits.
Food inflation now days have become a global phenomenon, attracting the attention of many economists, policy makers and the public in general. It has entered in to two digits in many countries. Mostly a common man is affected by it. Many governments are unable to control it. It has become a night mare for many due to increase in land values in many countries due to real estate boom where land has become a trading commodity, doing no cultivation and avoid risks concerned to it. Further man power has become very costly. Besides some people have shifted to commercial crops to get more benefits.
In India for many agricultural commodities Minimum Support Prices have been fixed at a very high level. Consequently the prices have become very high in the primary agricultural markets. In order to avoid criticism by the opposition parties many governments are conducting raids on the traders and food processing units and fixing cases on them with the reason they are hoarding the stocks. The cases do not stand the test of legality. But the trader is put to lot of tension since most of his funds are from borrowed sources. It further leads to rampant corruption on the part of officials. It is a discouragement to entrepreneurship. Always the trader is made a scapegoat for the actions of many persons involved in it.
In Ethiopia government has done a wonderful thing to control the food prices. It has proven to be successful and very much effective in controlling the prices and the subsequent food inflation. They have fixed the retail selling prices of many food items and the price list with government stamp is pasted on the glass doors of retail provision stores. The consumer reads it and pays the same price as fixed by the government and if a trader charges a higher price the matter is referred to controlling authorities, where by his license is cancelled and sometimes he is penalized and punished. Consequently prices have come down by 25 to 50 percent.
This is the best measure to control food prices. There will be no speculation dealings by traders and food processing units since the prices will not go up because of rate fixation by government. This method can be followed in all the countries to control the food prices effectively and same the consumers and general public from the clutches of inflation. Government will not be criticized for the evil effects of food inflation
About the Author
Professor of Finance, Hawassa University,Hawassa,Ethiopia
Former professor,Kakatiya university,Warangal,A.P India
Former district coordinator,A.P.Productivity council,Hyderabad,
former Vice Chairman/director,Bhadradri Bank,Khammam,A.P.India
Always Sunny Webisode: Green Inflatable Guy Dance-Off
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