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The Case:

Containing inflation is not easy and stabilizing prices of essential food items is even more difficult. In Pakistan, effective monitoring of food prices is nowhere in sight. Repeated warnings by officials against profiteering fall on deaf ears.  When supplies are disrupted, prices move up. Food inflation peaked in FY11 to 18% against aggregate CPI inflation of 13.7% because in that year, super floods had washed away pulses, vegetables and other minor food crops and wrecked farm to market transportation. Sowings and harvests of wheat, rice, maize and sugarcane were also hit. The very next year, food inflation equaled overall inflation of 11% as supplies had improved after increase in crop harvests and improvement in logistics. In the last fiscal year too, food inflation of 7.4% was slightly higher than the general inflation of 7.1%. But in six months of the current fiscal year, increase in food prices has been higher than increase in CPI inflation as a whole, 9.9% against 8.9%. According to latest inflation report of State Bank of Pakistan (SBP), prices of 17 out of 20 food items went up in December with year-on-year increase ranging between 2% in case of sugar, to 78% in case of onions. Reports of previous five months had painted almost identical picture of prices of essential food items. According to Pakistan Bureau of Statistics (PBS), food inflation in small towns and villages rise faster than in major cities, it essentially means supplies are really scant. It also means that in the given period, cost of transportation of some food items from cities to rural areas has been higher than intra-city transportation cost. There is even huge difference in the prices of rice, wheat flour, sugar, pulses, fish, eggs and poultry meat in various parts of the country. Retail food prices also vary among various cities and even between different markets of the same city. Some food items like vegetables, fruits and pulses show erratic changes in prices also because they are perishable. Not only Pakistan, but other countries in the region like IndiaChinaBangladesh and Sri Lanka have lately experienced abnormal rise in prices of onions and potatoes simply because a late or faulty assessment of crop shortage made it difficult for them to compensate supply gaps with imports.

 

Requirement:

Being a student of Economics, carefully analyze the above case and think over the factors that cause a huge difference in the prices of food items in various parts of the country. What measures should be taken in order to control the food inflation as a whole? Discuss logically.

Important Note:

For better understanding of the case, read this article thoroughly.

http://epaper.dawn.com/DetailNews.php?StoryText=27_01_2014_604_001


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Views: 3583

Replies to This Discussion

Agree with u Rapi siso.

 GH...

rapi us ne net se copy kia ho ga and net se google ker k jo b material bnaya at the end it becomes her point of view not the author's .... coz she searched and worked out and finally concluded the paragraph .... 

Natural and man made disasters are the another reasons of increasing the prices of Food items across the country... such as Flood, droughts and earth quack.. 

Anyone tell me this answer is correct or not plzzz

well...copying someone's original words are allowed ONLY in such case if you mention that someone's name.! or you got the copy rights via that person's permission.! if not...then obviously it will be called a crime...a kinda crime that mentioned above by the original writer of that COPY'D gdb...so here is another example of COPYING which is done by the one who is THE TOP MEMBER OF THE MONTH.! & am not surprised by it as well because...it's quite usual..COPYING & PASTING..it effects the image of this place...originality is always appreciated...while COPYING is always criticized.! btw...well done RAPENZIL...you did a fine job...appreciation for you :) 

Copy just Unhun ne he nahi kya...Balkay yahan "Our main purpose is Discussion............."

ka Sirf  slogan he lgaya jata hai(Sorry ager kisi ko burra laga toh")

HEr koi Copy paste  Ker raha hai .....

mujay to kuch b samj ni a raha is gdb ka 

taleyah ... rapi sis ny khud apny words may jo likha usay apni traf sy opinion bna k paste krna kidher ka insaaf hy.... pasting to log bht dhrly sy kr daity hain baat to tab hy na jab usay khud apny words may likha jaye ...

 ♦ѼǦɍȃḉḭṍŭș ĦèȃɌʈѼ♦  ya Economics ki book written by  professor William D. Nordhaus ,,,chapter no 30 chapter name inflation page no 617and 618 sa cpoied ha ap chaho to check kar lo

what u think all of u main na sari book pari ha wo chapter  kangal dia ha ...what u think ka mujay ni pata ka ya kidar sa copied ha and sorry to say rpenzil siso u also copied it ,,,that's not ur own words

SAARI BOOK PARHI HAI.??? really.? itne sare pages.! lol & btw i hope you understand english well.!!! what RAPENZIL said about OWN WORDS is about the last words which are "" 

(In my point of view , these are the reasons which are increasing the food items and hence the overall inflation.)

 .....but there could be more reasons regarding it ... Think about it @ All. 

"".... 

now THESE were the lines SHE mentioned were wrote by her own words...not written by professor William D. Nordhaus...

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