Take steps to halt food price rise

It is the turn of tomato and other vegetables of common use to hit the budgets of people after the prices onions and pulses hit them badly in the last few weeks. In spite of claims of moderation, onions and pulses have not gone back to their old price levels. Vegetable prices have soared in the last few days because of unseasonal rains which destroyed crops in many areas and affected supplies. The shortage of rains in some other producing areas has also curtailed supplies. A large part of the supplies that have come into the market is damaged and is of poor quality. High prices of items combined with low availability and poor quality make a difficult mixture for people because food is the first requirement of life. The reasons for the price hikes of different items are different at different times, but there are common themes of adverse weather and absence of administrative and other measures to tackle situations of shortage running through them.

In the case of perishable vegetables, there are no facilities for cold storage and preservation. Effective crop insurance can protect farmers against losses but that is absent. Irrigation facilities which provide a defence against the vagaries of rains are not available in most parts of the country. For example, just under 20 per cent of the acreage under pulses, which are important food items, is irrigated. The marketing system for farm produce is very faulty as it is dominated by agents and middlemen who act against the interests of both producers and consumers. Productivity is low for most agricultural produce because of poor agricultural practices. Buffer stocking is inadequate even for important items. Again, in the case of pulses, there is no procurement by the Food Corporation of India (FCI). Import-export policies are also not always aligned with the needs.

Food price inflation is a persisting threat. In October, the consumer price index rose by 5 per cent and this was mainly because of the increase in the prices of items in the food basket. Over 40 per cent of the 5.25 per cent increase in food inflation was accounted for by pulse prices. The consumption of pulses and all other food items is only going to steadily go up because of the increase in population and changes in consumption patterns. Both short-term administrative measures and long-term policy changes are needed to ensure that food items are within the reach of common people. The health of the farm economy is also crucially dependent on them.