by G P Sahu on Apr 09, 2008 03:07 PM Main cause of inflation this time is Rising Food price all over the world and cost of Oil. Both of these prices which are not our FM's controll were low during NDA's regime. (Dont forget NDA govt. passed on all increase in Petro Price to consumer, if they were at power now, petrol would have cost 120 Rs. a liter). any way, main reason of food price increase all over the world is - 1. chnage in our food habit, which is related to increase in life style. 2. conversion of corn, soya to biofuel. 3. continuous drought at Australia, who supplies a huge percentage of corn, wheat (gloabal warming could be one the reason for the drought) 4. Petrolium price has increased input cost of agriculture (irrigation, tractor, transport all require petrolium products). 5. In India neglect of agriculture for last 60 yrs. For last 10 yrs, we reduced our stock , with an idea that we can import it any time required. But it's no longer possible now given the very high international price. 6. All rice producing countries have stopped export to keep their citizen happy (price of rice is sky rocketing in those countries). In fact United nation is predicting global unrest over shortage and high price of food items. 7. In india, we are switching over from agriculture to Industry. Just calculate how much of farm land has been conveted in to SEZ. 8. Higher cost, requires more compensation for the worker, that pushes price for other commodities, Its a vicious c
