India has experienced persistent and high food inflation in the recent past. What could be the reasons ? 1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30% 2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change. 3. The food supply chain has structural constraints. Which of the statements given above are correct ?

Persistent food inflation in India is driven by both demand-side shifts and supply-side inefficiencies. Statement 2 is correct as rising incomes have led to a significant change in consumption patterns, shifting demand from staple grains toward higher-value foods like fruits, vegetables, and dairy [3]. Statement 3 is correct because the food supply chain suffers from structural constraints, including fragmented linkages, inadequate cold storage, and poor transportation networks, which lead to high wastage and costs [2]. Statement 1 is incorrect; while there is some land diversion from coarse grains to rice and wheat due to MSP incentives [1], there has been no steady 30% decrease in the total area under food grains over the last five years. Instead, the area under food grains has remained relatively stable or seen marginal fluctuations rather than a drastic 30% decline.

Sources

1. [3] Economics, Class IX . NCERT(Revised ed 2025) > Chapter 4: Food Security in India > Let's Discuss > p. 51
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 13: Food Processing Industry in India > Controllable Challenges > p. 411
3. [1] http://www.ers.usda.gov/amber-waves/2015/july/food-policy-and-productivity-key-to-india-outlook