Thursday, April 4, 2013

Effect of Price Hike

Effect of Price Hike

How Price Rise Effects Common Man Life?
Government focuses on economy of our country because economy plays an important role in working of government. Many developing countries have largest economic development but some countries are developing there economy. The factor which is common in every economy every country is the price rise on each item especially on the food items are very high as it is used to before.

Unending Misery of the Common Man
The price rise across the board has hit the common man hard. These are paradoxical times. The country’s food production is at record levels but the common man is groaning under the prevailing high food prices. The latest fuel price hike with its cascading effect would add to the misery.
The price situation has especially crippled the life of middle class. Even before they could digest the increase in petrol price, governmental agencies have hiked milk prices. Now one has to pay more interest for home loan. The RBI has tightened credit availability.
 Analysts point out that in recent months vegetable prices have shot up nearly 22-25 per cent even at wholesale level. But its impact on the housewife gets more severe because of the inefficient distribution system where the same material passes through a series of intermediaries that jack up the costs while the authorities look the other way.
Rice that is the basic staple of many Indians sells about 3-4 per cent higher, wheat at 6 per cent higher compared to last year. Dal prices are still high though it has come down a bit after having touched the roof. Most pulses were selling between Rs. 80 and Rs. 100 a kilo last year. Similarly, prices of sugar, atta and milk have also have gone up.

 The price of milk has leapfrogged from an average Rs 22 a litre in 2008 to Rs 30 to Rs 35 now. In some cities milk price is as high as Rs 38 a litre.
  Now, rise in prices of essential commodities is a weekly reality. In India, the common man’s purse has grown thinner with rise in the fares of government-owned city bus travel and a whopping 20 per cent hike in electricity charges.

Official agencies give several reasons for the high prices. Globally, food prices are being driven by financial players taking over commodities markets. A report from the World Development Movement claims financial speculators now account for more than 60 per cent of some agricultural futures and options markets, compared to just 12 per cent 15 years ago. "Financial speculators have flooded food commodity markets, creating sudden price spikes. For people in developing countries, price rises are disastrous,"
“The first thing Indians do with higher Some state governments often blame the central government policies for the price rise while the anti-hoarding and stocks regulatory powers. Income is to switch to better and increased food intake and also confectionary term like chips and biscuits. Moreover, India has a lot of vegetarians which means only increased consumption of pulses, vegetables and milk,”
 Some wonder why wheat and rice prices continue to go up when there’s record food grains production. The blame is squarely on the faulty public distribution system and storage systems. Some state governments often blame the central government policies for the price rise while the Centre says that the states are not enforcing the anti-hoarding and stocks regulatory powers. Others point out that blaming hoarders for this scale of price rise is unfair and the situation is totally different from the scarcity conditions of the 1950s. “We have to think of a completely new model.

An Article And Essay On How Has The Increasing Price Rise Of Foods Has Affected A Common Man’s Health?

These price rise prevent the development of the country. This price rise on food items has caused great effect on the growth of economy. The rise in the price of food items has caused great effect on the economy and life of people. All the profits and increment in salary are spent just to but these costly food items. Price rise had a ripple effect on everyone’s life. Negative returns are followed on the investments made by government, due to inflation on the food.

As the food inflation and pries rise, banks provide high rate of interest on the investments made by people. This procedure may be a good offer for a common to take loans and make investments on there requirement. All these not only affect a common man life it also have bad impact on all over growth of country. This is the only reason why this food inflation should be controlled keeping in mind the need of time and country.
In many developing countries there is also a trend fast food, undernourishment and having complicated food habits. In foreign countries they follow fast food habits the food which is not nourished and are cause of obesity in children’s and adults, these also includes the processed foods, fats etc. Due to bad food habits there is malnutrition, overweight, non- communicable diseases.

Agriculture is the only medium to increase the food availability to people and income, there food habits and nutrition security. The effect of price is seen in many ways and it differs from gender to gender. Women’s are more concern to provide good nutritional food for their family and children whatever the price of the food is.
Women always make sacrifice to earn good health of the family. For increase there over all income of the family women tend to work in the place where they don’t want, she try to do all to provide just the better health and to increase income of the family.

Impact Of Price Rise On Poor

The inflation on food may also lead to starvation in poor family because there income is noit sufficient to provide three meals to their family and starvation is seen there. The life of poor people are so diverse that they are already unable to provide3 meals to their family and then inflation of food, give them stress and pressure from where to buy food , there per day income is not sufficient to buy costly food to fed their family. So great impact is seen on poor families of price rise.
Steps are taken by government to control price rise of food. Some initials step is taken to minimize price for domestic prices. Some of these steps will help to stabilize and reduce price rise. National government is taking various steps to minimize the effect of inflation on the common people. So this was an article on the how life of people affects when there is increasing Price Rise of food.