Impact of high oil prices, which affect agricultural costs directly because of the significance of energy as an input in the cultivation process itself through fertiliser and irrigation costs as well as in transporting food.The high price of oil is hitting consumers' wallets with each trip to the gas station or grocery store. India imports five lakh tonnes of wheat and other food products from other countries. Australia exports 12.2 percent and Canada 13.2 percent of world wheat exports.Now because of the 2 Consecutive droughts in Australia and Canada in place of export they are importing wheat from other countries. Prices of all essential commodities are rising not just in India but across the world due to a fall in supply. Inflation has spiralled all over the world. One of the most lasting cause of higher food prices is certainly population growth. As countries such as China and India grow and prosper, they are consuming a greater share of the world's food. Prosperity affects how much people eat and what they eat.
