Tuesday, June 7, 2011

FOOD PRICE: THE MOST SURPRISING

FOOD PRICE: THE MOST SURPRISING


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When food prices are not to come down, as food prices are very crucial & very SURPRISING THING among all things as shooting food prices can bring down prices (can cause crash) of all other items,  can make "the money" totally useless, as well as can give rise to uncontrollable inflation.



Food has to bought & daily, one cant defer it, can postpone any other item, but not food, so if food prices shoot up steeply other items will suffer & lose price, that is even if on the face, prices of other items may not seem to fall, but actually are falling as high inflation due to food prices is deceasing the value of money very fast.



Here is the point, as your money is losing value so the prices of other items are decreasing, even if they appear standstill.



Also as agriculture cost will rise due to rise of food prices as a causal effect so agrarian labour cost will sharply rise, so will cause reduction in employment & agriculture will turn into less labour intensive & dependent on mechanization also contract farming will replace traditional farming more & more.



One or two persons will manage a large tract of farm land along with this large agriculture farm fields are being taken on lease by one country in other far away countries, this is being done to make sure meeting the large future need of food, but will enhance food cost tremendously, IT IS HIGHLY IMPORTANT FOR TODAY’S ECONOMISTS TO ANALYZE THIS ASPECT.



As money goes to buy food, other items suffer & as other items suffer, so the other sectors (industries) suffer as it results into low take off industrial products, so blue colour employees as will be highly hit, so the white colour ones too will also be gradually hit, as high food price will slacken other sectors.



Printing money to counter the high food price & to create employment will add to higher food price & create unemployment, as a money printing economy will generate only a negative impact, unlike in usual recession & inflation, it requires very deep analysis, as it has a wide ramification & world is sitting on this, also food tracts are being converted into bio fuel plant farm lands & special economic zones.

So point is FOOD PRICE is a very surprising thing, as it has a queer effect.



Subhro Das



Conceptualized July10 to August10

Written 01/06/11

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