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.
RE:High oil prices, to be blamed?
by Manoj Kumar on Apr 14, 2008 11:49 AM Permalink
The main problem here is the cultivated lands are not being properly used which resulted in a short supply of food and prices were up. The government are not encouraging the farmers for a self-sustained growth. They will simply eliminate the farmers loans which will benefit the big and educated farmers and not the uneducated poor farmers. The government should allow the farmer to fix the prices for the product and eliminate all middle level players. This will encourage the farmers for doing agriculture. Now, all farmers started to think that they should educate their kids and get them a government job or private IT job as they cannot earn more in farming. The government should have brought a position as such the farmer could earn more than a government and private employee. Long term plan required to implement this. I believe both (NDA or UPA) government will not do this.
RE:High oil prices, to be blamed?
by Hebbar R on Apr 14, 2008 08:14 AM Permalink
This is just trying to deflect opinion. If fuel was the main case, and its price is increasing, why did not the Govt reduces duties and taxes on fuels? These are very high in India. The truth is just that the Govt is not sensitive. They take pleasure in getting higher returns when the international prices increase.
You are right in talking of population. But, pray what is the Govt doing about it?
