Even after bumper food grain production for continuous second year , the prices do not budge to come down in India. The rational of demand supply gap is being questioned.
I can say food grain prices are not going to come down for this year also. The GOI is purchasing all food grains at much higher prices (MSP) than other traders can offer in market. The traders are getting less supply from farms and GOI is not releasing stocks in open market . GOI is holding record amount of food grains sufficient for two and half years to feed entire Indian population. GOI should be blamed for hoarding & price rise and not the rational of demand supply gap.
Reason for buying at high MSP...?? vote bank politics from most of the political parties. They fail to remember that giving high prices to select grain growing farmers is not going to give them winning votes as India is moving from agriculture economy to service & industry based economy. The action is impacting much larger population & hearting people in BPL category.