1. Cereal Consumption Includes Both Food and Feed and Should Rise, Not Fall as Average Income Rises : Many Economist believe that cereal consumption is inversely related with income. 'coz consumer diversify away from cereals to animal products. cereal consumption demand includes feed grains embodied in animal products . Therefore per head cereal consumption should increase with increasing income . US had per head cereal consumption of nearly 1 tonne in 2005
2. What Explains Falling Cereal Demand Per Head in India When Average Income Is Rising Fast? : decline is serious matter to worry. imply that cereal consumption is falling involuntarily for the poor.growth is so highly concentrated that is resulting in shift of income distribution of a particularly adverse type, namely, minority enrichment and mass demand deflation
3. Substantial Decline in Real Spending in Rural India: deflating nominal spending by consumer price indices to obtain “real spending” is no longer capturing the actual situation . all elements of the original basket may not even be available in the later year, Over long periods of time the fixed basket to which price indices are applied has led to misleading results.
Source : EPW Nov 20 ,2010
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