Daily life of common man is affected by Food Inflation
India ranks second worldwide in farm output, still it is facing the problems like food inflation which is recorded at 18% in Aug 2013. This inflation will affect the pocket of common man, because in India a person is spending half of his income on food.
National Food Security Act, 2013 (NFSA) which says every Indian has “the right to food” and as per NFSA, they promising 5 kg cereals per capita per month (pcpm) at highly subsidised rates to 67% of its population. In reality 5 kg cereals is not last for a week, so people will have to face the market to full-fill their need of cereal and other food items, and most of other food items are on hike specially vegetables, the inflation in vegetable is at 78% with onion leading the list.
The only solution for this problem is, the government should supply its huge stock of rice and wheat to domestic market at pragmatic price which can be Wheat at Rs.14/ Kilo and Rice at Rs. 19/Kilo. Or government should allow farmers to sale the farm output directly to the local market. This will immediately bring food inflation to less than 8%, as cereals have the highest weight in food.