This project describes about inflation, its main causes and role of middle men in India. Mainak Ghosh from Globsyn Business School.

1. FOOD INFLATION AND THE
ROLE OF MIDDLEMEN IN
INDIA..
By LG -13&15
SECTION -B
Shubhadeep Bhaumik
Debolina Mazumder
Swastika Das
Dinesh
Mainak Ghosh
Utsav Basu
Arindam Mukherjee
Arka Das

2. INFLATION..
 Inflation is an increase in the general price level of
goods and services in an economy over a period of
time.
 When the price level rises each unit of currency
buys fewer goods and services.

3. CAUSES OF INFLATION..
There are three causes of inflation-
o Demand-Pull Inflation
o Cost Push Inflation
o Expansion of the money supply

4. DEMAND PULL INFLATION
 Its simply when demand for a goods or services
increases so much that it outstrips supply.
 Sellers maintain the prize they will sell out .They
soon realize now they have the luxury of raising
prices, creating inflation

5. COST PUSH INFLATION
 It only occurs when there is a shortage of supply
combined with enough demand to allow the
producer to raise prices.
 For e.g.. Natural disasters can temporarily create
cost push inflation by damaging production facilities
such as what happened to oil refineries after
HURRICAN KATRINA.

6. EXPANSION OF THE MONEY SUPPLY
 A third cause of inflation is over expansion of the
money supply. The money supply is not just cash
but also credit , loans and mortgages.
 When loans are cheap, then there will be too much
money chasing too few goods , creating inflation.
 Prices of everything will increase even though
neither demand and supply has changed.

7. FOOD INFLATION
 Rise in the price of food is known as Food inflation.

8. CAUSES OF FOOD INFLATION
 There is short term supply constraint such as bad
weather.
 There is also evidence of increasing long term
supply constraints such as loss of farming land due
to global warming

9. CAUSES OF FOOD INFLATION(CONTD.)
 Lack of storage facilities i.e. Warehouse
 Natural disaster (hurricanes,floods,earthquake)
 Rise of input cost i.e. cost of agricultural labour
which accounts for 40% of total cultivation cost for
major food products.

10. ROLE OF MIDDLEMEN..
 Farmers sell crops and vegetables to the
middlemen who exploit these poor souls and get it
in a cheaper rate and sell this in turn at a higher
rate to the retailers according to its demand.
 Occasionally they hold on to certain products and
thereby increasing demand for it and releasing it
intentionally on a later day when the demand
increases leading to inflation.

12. HOW TO STOP MIDDLEMEN
 Initiatives like PepsiCo ITC should be followed
where they tend to educate the farmers and buy
crops from them by giving them the right market
price at the same time giving rise to farmers
empowerment.
 Initiatives like this can stop the middlemen menace
and bring happiness into the farmers life leading to
less amount of inflation

13. THANK YOU..