Food Habits and Food Inflation in The US and India An Experience in Covid-19 Pandemic
Food Habits and Food Inflation in The US and India An Experience in Covid-19 Pandemic
Volume 9, Issue 3, March – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAR1913
Food habits and food inflation in the US and India;
An experience in Covid-19 pandemic
S.N. Saha
Abstract:- The US and India are different in various supply chain [3][4], labor movements followed by
socioeconomic aspects. Still the inflation are rates between absenteeism in industries, low capacity utilization and the like.
them showed moderately correlated in respected in respect These caused the dismantling of supply chain of goods and
of food prices 2022. Both countries adopted necessary services in daily living. So, on the demand side the adverse
measures to supply food and beverages in the lockdown effects like increasing pent up demand, in come in equality,
and related bottlenecks in order to check the rapidly rising loans, buying, For domestic stocks, safe heaven demand etc.
commodity prices. But still the food prices increased appeared inflationary rise in prices of daily needs took shape
continuously almost in the whole year,2022. in large part of the world and irrespective of developed and
developing countries[5].
Food and fuel have been said the drivers of inflation
during the Covid-19 pandemic period (Philip Barrett The Crisis
Sep,12,2022). The world itself was partially a closed Earlier studies on this subject are multi dimensional
economy as foreign trade dwindled to a large extent. So including the measures all around to combat the critical
countries had to depend mostly on indigenous production situation in this contest [6][7][8]. The urgent measures
and market supply network. But as the food and beverage included medical facilities, normalcy in supply chain of
demand, it is dependent on economic factors like testes, domestic needs, fund allocation and loans, internet facilities
habits and preference of the households. These factors and administrative follow up. These do not, however,
played important role in the head line inflation in different represent all aspects of global crisis management. Since
countries during Covit-19 pandemic. inflation is factor specific, it may differ among the countries.
But the world economy at present time is largely dependent on
The present study is an attempt to highlight the foreign trade, primarily import and export of food grains,
complex factors such as food habits ,tastes and preferences fruits, processing chemicals affected countries had to depend
in the US and India. This shows how the said factors solely on indigenous food output (production and stocks) and
impacted upon the food inflation in them. more effort to channelize that for the public. This was
somehow a difficult task because of the dominant adverse
Keywords:- Rank Correlation, Standard Deviation, Headline forces in the domestic supply chain. The impact of inadequate
Inflation, Habits, Tastes and Preferences, Food and supply chain[9] impacted upon the price rise rapidly, and even
Beverages, Indigenous Production, Lock Down, Supply Chain, to face an inflationary rate beyond the maximum tolerance
Inventory, Stakeholders, Administrative Follow Up, Foreign limit in both of them.
Trade, Tolerance Limits of Inflation.
II. FOOD INFLATION
I. INTRODUCTION
Both the US and India inherited food price inflation from
The severity of Covid-19 pandemic created a panic all 2019 or earlier but at a low level and within their maximum
over the world since, it broke out in December,2019, Wuhan, tolerance limits(US 2%, while India 6% as given by the
China, Susceptibilities to the pneumonia Virus was the cause Fed[10][11] and RBI respectively). However, food inflation
of large scale physical distancing and movement restriction rate was 1.8% in the US(Bureau of Labor statistics) while it
lockdown came into effect [1][2] people of the affected was 2.9% in April, 2019(union Budget). The food prices,
countries were mostly stuck at home (excepting emergencies) however, for exceeded the maximum inflation tolerance limits
within a short notice. The critical features of these measures in these countries as given below(based on monthly changes).
were barter to traffic, trade (internal and external ) normal
IJISRT24MAR1913 www.ijisrt.com 2943
Volume 9, Issue 3, March – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAR1913
Table-1 Food Inflation in the US and India : 2022 (Monthly Changes)%
US India
Jan 7.50 5.43
Feb 7.90 5.85
March 8.50 7.68
April 8.30 8.38
May 8.60 7.84
June 9.10 7.75
July 8.50 6.75
August 8.30 7.62
Sep 8.20 8.60
Oct 7.70 7.01
Nov 7.10 4.67
Dec 6.50 4.90
Source : Statista, BLS
The Co-efficient of Rank correction ( Spearman method) III. INVENTORY AND SUPPLY CHAIN
shows 0.59 which indicates a moderate linear relationship in
the movements of food price inflation in the two countries. Major part of inventory included suspension of
However, the averages and the standard deviations show production in many plants, unwillingness of workers as fear
differences. Both average and the SD in the US were higher for infection broke out around. Result was empty rank in
than these in India. This indicates the fluctuation rates higher molls, decline in park production (25% from a year ago in
in the former than the latter country. Both countries have June 2020) [17]. At least 54,036 workers including 39,905 in
exceeded the tolerance limits of inflation in respect of food meat processing, 8,343 in food processing and 5,788 farmers
inflation alone. Pertinently, food inflation remains outside the were identified as Covid-19 positive [18]. Work force reduced
scope of calculating core sector prices in both the countries by 2.6% in 2022 [19] and that also adversely affected the food
become food prices are highly volatile. [Investopedia]. But it processing plants of the US. Still, however 89.8% of country’s
is included in headline inflation factors, because of its possible people were food secure while 10.2% faced the trajectories of
high impacts on socio-economic sustainability of a country food insecurity in 2021 [21]. And 49 million people ‘turned to
banes and community for help putting food on the table’
Food security as perhaps the greatest challenge next to (Hunger in America) in 2022.
medical facilities during the pandemic. Supply of food was
subject to broadly field production, part of manufacturing It is clear that the US food supply depended on the
sector and the transport network. In the inventory [12] was a intermediary sectaries industries engaged in that processing.
hurdle, because nearly 70% food and beverages are dependent Because people are habituated in processed foods.
on manufacturing sector. And 73% of food is ultra-processed
[14], 60% of calorie intake originates from the ultra-processed India. On the other hand is mostly rural, only 35% of its
ones [15]. Study shows sush food is greater among less population belong to urban areas. Dependency on processed
educated, younger and lower income-specially blank and non- foods like biscuits, bakery food and beverages and restaurant
hiponie white people (meyer and taillie, august 10, 2021, or hotels is low and casual (less than 10% while 90% food is
UNC). People are mostly dependent food supply out side of home cooked. This the traditional habit of home priority for
home (over 90% of Americans cook a meal at home once a food. As for the customary food items rice (over 50%) [23]
week). Food production in adequate in the US and only 12.7% wheat (atta), gram, pulses, vegetables, fish, meat, age, milk
of food is imported. People live mostly in urban sector (83%) and sweets are in top of there testes, habits and preferences, in
and the rural people are only 17%. The major stakeholders for vegetarian families (20% to 40%, Investopedia ) even do not
food are the different big and small processing plants ; bakery consume non-veg. iterves (fish or meat). So unlike the US,
products, beverages, brewed like bear, ale, food acids, citrie India did not depend much on inventory for food and
etc. include the list of their production. In 2021-2022 the us beverages supply. Here lies the comparative advantage of
basic food production (corn, wheat, barley, oats, soybean etc) India crude-food supply during the pandemic and that was at
was sufficient (except a slight decline in harvesting of oats) per with the food habits of majority of population of the
[16]. In fact, the output showed a surplus over and above the country.
domestic needs including feed for animals and industrial uses.
IJISRT24MAR1913 www.ijisrt.com 2944
Volume 9, Issue 3, March – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165 https://doi.org/10.38124/ijisrt/IJISRT24MAR1913
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