We have discussed these issue of price rise in two questions, thus I am going to post those links here for the benefit of all users including you, so that we don't have to repeat ourselves.
https://answersrip.com/question/index?qid=20091203232905AAObHIf
Off course corruption and scams are contributing factors for the price rise but they are not the reasons for the price rise. These analysis in Outlook are correct but these would not have been posted if the price would not have gone up even if these would have happened. Other two links I don't pay much attention. I found outlook the only reliable source out of the three links you posted.
I don't know if any one are into the business of agricultural products business but I am. I buy every year Potatoes in January/February and sell it back in July August. Sometimes I make 300% and sometimes I hardly make any money. The entire business depends on the crop in that particular year. I would like to give a little detail about this business.
When I started this business, I was purchasing Potatoes from Indore Mandi, because I started with very small scale, and later I increased the quantity and started buying from farmers around Indore directly and the price was almost 50%. And now I buy from farmer and cooperatives around Agra and Mirzapur in UP, and price difference between Indore farmers and UP is 30%.
For example, if I pay Rs 1 per kilogram for potato, I pay Rs 3 for cold storage and Rs 1 for transportation, and finally depending on that year crop, it is sold in market for any where between Rs. 7-14 per kg, and the end customer gets it for Rs. 10-20.
If I am not in picture, the end customer can probably get it for Rs. 7-12, and farmer can earn much more than what he earns by selling to me.
Who is responsible? I AM NOT RESPONSIBLE. I am doing a legal business, I am making money from opportunity that exists. This is not scam, this is not corruption, this is not scandal.
This situation exists because farmers are not made strong in agriculture driven India and for that government is responsible. And that is the cause of price rise.
I still stand on my view that price rise is due to the present pathetic situation of farmers. And government must do everything to improve the condition of farmers. IT, technology, energy, infrastructure everything is important but farmers and agriculture are backbone of India and first importance should be given to them unless and otherwise they are made strong India cannot be developed and these price rise are must. These scandals and corruptions are peanut size contributors, when the very basis itself is wrong, who can the tree can stand strong.
And the most important thing, I am not here to defend Congress or UPA government. I am here to learn and discuss the issues. If any one thinks that I am here to defend Congress or UPA he or she is totally mistaken. I have made myself very clear several times and let me repeat myself, I have to chose better from the worst political parties of India, and in my view that is Congress. That does not mean Congress is the best. At any time if I find a better party than congress I might think of supporting that party like I support a better politician if I find one. That is why please answer the question and refrain from commenting on others and answer the questions. My apologies for saying so but these kind of comments only shows the immaturity of the users.
@Sudan, though I am not responsible for answering your all the queries, but ......
I have a job in Chennai, currently stationed in Tampa FL. I have my family in Indore MP and I have family business of transportation, logistics, industrial gases and fresh produce in Indore. Do you have any problems with that? Why do you have to get into my personal details? Should I send you my personal resume and birth card to you?
Were the prices always this high in last 62 years? Price were low and high before and after NDA regime.
@Rahul B, I am sorry to say that you know nothing about fresh produce business other than eating. Potato is produced only once a year, and you eat it entire year. How do you think you get it?
Someone needs to keep it in Cold Storage and sell it when the fresh potato is out of Market. If I do not do it, you will get Potato only for 4 months, and rest of the year you would not get Potato.
You commented with your limited understanding of Fresh Produce Business and but that made me understand that I must explain what I point I am trying to make. I wast thinking that because we are talking about price rise, user would be knowing about farmers and agricultural business.
@ All. With my example I am trying to say that, the work I am doing, in my opinion ideally farmers should do but they cannot do, because they have taken loan and they are paying interest. They have to repay loans as soon as possible that is why they have to sell there crop as soon as possible and get there money. thus they sell there crop at whatever rates they get.
If they are in good financial position they would not do that, but store the crop in cold storage by them self, a middle man like me will be eliminated, and farmers will earn more, and end customer will get crop at cheaper price.
This is just one example with my personal experience, and that is why I once again, emphasis, financial condition of farmers play a very important role in price rise.
@SUDAN: AS I SAID EARLIER, YOU ARE ON YAHOO ANSWERS ONLY TO FIGHT WITH ME. AND THIS IS THE LAST TIME I AM PAYING ANY ATTENTION TO ANY PERSONAL QUESTION RAISED FOR ME, NEXT TIME YOU WILL NOT BE ENTERTAINED.
DOES THIS SATISFY YOUR EGO OR YOU NEED SOMETHING ELSE FROM ME?
http://www.tampagurdwara.org/gurdwara/scripts/default.asp
GUYS, DO I HAVE TO PROVE THAT I GO GURUDWARA OR MOSQUE OR TEMPLE TO SOMEONE? DOESN'T PEOPLE KNOW THAT GURUDRAWAS, TEMPLE AND MOSQUE EXISTS IN EVERY PART OF THE WORLD?
AND PLEASE DO CONSIDER MY THIS CAPS AS SCREAMING.
@Rahul B, what are you trying to say? Do you know what amount do I invest in Potatoes? I think you should refrain on commenting on any users. Stick to the issue, rather than trying to attack the users.
Profit increases when the crop is bad during the year, and the profit reduces when the profit is good, I make 300% profit at times and there are times when I loose my money when my entire stock gets rotten due to bad crop, are you accounting for my losses? Just leave my business to me. Don't get into my business, that is not medicines, that has 100% risk factor, and that I own.
I stick to the aim of my answer and that is the farmers should be made strong financially.
I guess, because of these two users, I have lost track from the original intention of answering this question, thus I don't think its worth spending a minute more on this answer. Thus please consider this as my final edit. I cannot engage myself in personal fights and answering personal comments and questions. I had already made my point clear in my original answer itself, thus I should not answered any irrelevant comments addressed to me. Sorry, about me.
thanks and have a wonderful day.
@Sorry, I want to add something after my final edit :)
Look at this,
http://sify.com/news/madhya-pradesh-govt-seizes-hoarded-sugar-news-national-jisvOeafdgd.html
In this drive MP government seized 45,000 quintals of illegally hoarded sugar. These are also reasons for price rise. And this is artificial. And the only authority that can act to resolve this problem is state government. Mr. Shiv Raj Chouhan was praised for this drive by none other than Congress and UPA chairperson Sonia Gandhi.
http://www.telegraphindia.com/1090825/jsp/nation/story_11405348.jsp