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Posted (edited)

Income growth slump is due to inflation control plus not enough cold storage and food processing places coming up fast enough to take care of the excess production resulting in spoilage. 

Edited by surajmal
Posted
9 hours ago, surajmal said:

Income growth slump is due to inflation control plus not enough cold storage and food processing places coming up fast enough to take care of the excess production resulting in spoilage. 

Just thinking out loud here: If there aren't enough cold storage units and food is being wasted, why should the income slump? It would stay constant, given that actual production is same (guessing) and demand would have had an organic increase. Price of food has more or less plateaued over the last 18 months as efforts to control inflation, which you mentioned.

Posted
3 hours ago, Mariyam said:

Just thinking out loud here: If there aren't enough cold storage units and food is being wasted, why should the income slump? It would stay constant, given that actual production is same (guessing) and demand would have had an organic increase. Price of food has more or less plateaued over the last 18 months as efforts to control inflation, which you mentioned.

Income has not slumped,  growth in income has slumped. 

Posted

in one of the quarterly results of kscl , they mentioned world production of grains and food items are the highest ever in 2017/2018 ..

 

If 50% of the people depends on agriculture  which accounts for 10% or less gdp, then most of them will be screwed 

Posted
7 hours ago, Tibarn said:

Can't have all three:

1) Lower inflation

2) Higher MSP

3) Higher farm income growth 

Is this your version of the Mundell-Fleming trilemma?

:p:

Posted
On 3/4/2019 at 11:19 PM, Mariyam said:

Just thinking out loud here: If there aren't enough cold storage units and food is being wasted, why should the income slump? It would stay constant, given that actual production is same (guessing) and demand would have had an organic increase. Price of food has more or less plateaued over the last 18 months as efforts to control inflation, which you mentioned.

Actual food production has been going up consistently. Simple  S-D curve >> Supply side up but demand isn't going up at the same rate since not enough cold storage units or food processing plants. Call it inventory. No buyer >>> spoilage or prices per unit fall or not increase in congruence with cost of living index. 

 

Even increase in exports is going to require greater industrialization of food processing industry. 

 

MP elections lose for BJP was actually because farmers weren't getting per acreage price of yesteryears (MP was getting bumper crop year after year). 

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