Inflation is a burning social issue today. Inflation means an increase in the price of things. It is bound to grow. When it is persistent, it reduces the purchasing power of people. The income of people does not grow in proportion to inflation. Millions of people have limited income. Recently eatables cost went double in Maharashtra. The price of vegetables also sky rocketed recently. Onions were sold at 50 rupees per kg. Onion and potato are widely used as side dish in northern India. The layman was unable to buy them. People expressed their displeasure over the inflation in the recent elections. The Governments' effort to import onion from Dubai may reduce the problem to some extent. Grocery dealers hoard essential commodities, and create an artificial demand. Inflation is a paradox. The farmer gets only rupees six hundred for a rice bag. But it is sold in the market for sixteen hundred. Government should take severe steps to control the price raise. Hoarders must be punished.
The public distribution system must be supervised periodically. Corrupt staff members of the fair-price shops must be sacked. Essential commodities must be distributed at subsidized price through PDS in all the villages. Some salesmen have a nexus with merchants. They sell rice and oil to them. They deprive the poor people of their share of essential commodities. To control price rise, Government should pay more attention to agriculture. If agricultural produce increases, price rise will naturally come down. But agricultural lands are becoming real estates.
Inflation doesn’t have a negative effect only, it has some positive effect also. As we know in a developing countries inflation must be 4%-5% and in developed countries 1%-2% because if there will be no inflation then the prices will remain stable and the farmers and the producers will suffer as they will not get the amount which they have invested, and thus unemployment will increase, poverty will increase and thus economy will not grow.
Inflation means increase the price of products.it dependes on demand n suplay.when the demand of product is higher at the same time production is lower or harder kept the product in godown. At higher price he sale the product and earn money. Govt. should keep attention for inflation n provide adequate quantity of product and also gives warehouse facility to farmer. Govt should decide the suszied rate of product. Govt should keep steps to increase the agricultural product it’s help to maintain keep some level of inflation .
Inflation is affected to lower and middle class family. This types of problem totally caused for hole seller. Who store the product and then create the demand. When government take the action of hole seller then will reduce the problem.
Many times government would not be able to provide the warehouse then also destroy the product by the rain so timely provide warehouse.
Inflation is a result of bad governance. It is a sin that mostly middle claas and lower class part of the society got affected.Inflation is imbalance in supply Vs Demand. Various factore like Government failure to provide susidized rates to the consumable items like LPG, Petrol , Diesel, Sellers keeping stock in excess and denied to supply to the consumers at the normal rate.Instead, they offer the same producta at very higher rate.
Here also Government should take necessary steps to mange the godowns stock. Recently, It was observed that the tonnes of foodgrains kept as Stock in FCI godowns were damaged due to unavailability of hitech inventory system in india. So, the government should take adequate steps to avaoid happending of such cereals and foodgrains wastage and reduce the inflation.
The increased current account deficit (CAD) Is also one of the major reason for increase in values of goods and services. The increase in CAD led the government to cut down the subsidy prices and hence increase in price of goods such as LPG, DIESEL etc. Factors affecting the CAD should be managed by government so as to meet the current requirement and reduce the country deficit.
The one of reason of inflation is many sellers are storing the pulses, onions, grains and other thing for long time, and they never provide these things to us when we are needed for that, and when these things are going to decreases in market then they sell these thing on higher rate(inflation). One drawback of this type of storing is that the many grains or things are get spoil due to long time storing which also cause the difficiency of thing .