Inflation is an economic condition where general level of prices for goods and services is rising and

subsequently purchasing power is falling. As inflation rises every rupee will buy a smaller percentage of
a good.
Causes


Inflation occurs when the cost of producing rises and the increase is passing on to consumer. The cost of
production can rise because of
a) Rising labour cost or when the production firm is a monopoly or oligopoly and raises prices, cost of
imported raw material rises due to exchange rate changes
) External factor: natural calamities or an increase in the economic power of a certain country
c) Increase in indirect taxes can also lead to increased production costs.
India loses approximately 58,000 crore worth of agricultural food items due to lack infrastructure such
as transportation and storage facilities
till date, Indian agricultural produce is largely dependent on monsoons since more than 60% of the
farmlands are not artificially irrigated. Therefore, during erratic or bad monsoons, food inflation grows
stronger.
Demands outpace supply
The reason is that the rains were unusually excessive and irregular and production either dropped or
there was exposure to pests.
It has to be better organised using modern technology.
Prices are shooting up in India not because of drought or production shortfalls. Indeed, the harvest this
year may be among the highest ever. The problem is that world prices have skyrocketed.
Blackmarketing ie increased rates in markets as big farmers may hold back their crops and plan to sell it
at higher prices
Lesser exports could save the country by increasing the taxes on exports of food which will fortify Indian
stand in the world as it has biggest agricultural land in the world
Better farming techniques should be used thus more productivity per hector farming land
Better storage techniques which is the mostly creating holes in Indian economy as most of the food go off
every year unchecked or wither on the vine