As the inflation rate is skyrocketing in India, the government is in a slurry to control the inflation rate. The government has only followed a one way approach to control the inflation i.e. by increasing the repo rates. Is the government too lazy to take comprehensive measures to control the inflation or does it think that inflation is not a matter which deserves its attention. Whatever is the reason; poor in this country are worst suffering from inflation as its decreasing the size, no. and the quality of their meals as well.
The main contributor to the inflation rate has been the food related consumable items like food grains, pulses, milk, vegetables etc. The main discrepancy here is that their is a vast difference of up to 200% in the wholesale rates and retail rates of the food related items. For example if the wholesale price of tomato at any wholesale market is Rs.10/Kg the retail consumers are paying more than Rs. 30/Kg for 1kg. This anomaly describes the true picture of the present state of mismanagement of farm produce supply chain; and in this supply neither the farm producers nor the retail consumers are getting benefited but the middleman.
So the need of the hour for the government is to find an optimum solution to this supply chain problem. This can be sorted by regulating the prices of fruits and vegetables in the same manner as food grains like wheat and rice. As time passes the governments needs to take the responsibility to take the welfare of the people and food security to the next level. This is the right time for the government to get out of its laziness, RBI dependence and take the food security in this country to the next level.
