Indian Logistics
Innovation of Agriculture Logistics
Managing Food Inflation
© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
About the study
This is a briefing paper written by KPMG that assesses the underlying reasons for the high levels of inflation in the food economy of the country and its subsequent impact on innovations in business models from both a corporate and policy perspective. Our study starts with a brief overview of the key reasons for the high levels of food inflation, government initiatives to overcome the constraints, changing business models and innovations in the private sector. We then highlight 13 different cases of innovation that have helped the food economy deal with the problem of inflation. The crisis also presents an opportunity to deliver greater value to consumers from both an economic and social standpoint.
© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Foreword
Double digit food inflation is an extremely topical concern that has plagued the Indian economy for the past three years showing no signs of abating. A high level of food inflation has a cascading impact on the overall health of the economy on account of the resulting interest rate regime that chokes the availability of capital to fund the economic growth engine. Reduction in food inflation has hence become a serious concern for the wider business community with implications beyond the food and agri-business sector. The reasons for the high levels of inflation are essentially structural in nature arising from supply constraints on account of the inefficiencies in production, processing, distribution and retail of fresh produce and food products. These
Managing Food Inflation
© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
About the study
This is a briefing paper written by KPMG that assesses the underlying reasons for the high levels of inflation in the food economy of the country and its subsequent impact on innovations in business models from both a corporate and policy perspective. Our study starts with a brief overview of the key reasons for the high levels of food inflation, government initiatives to overcome the constraints, changing business models and innovations in the private sector. We then highlight 13 different cases of innovation that have helped the food economy deal with the problem of inflation. The crisis also presents an opportunity to deliver greater value to consumers from both an economic and social standpoint.
© 2011 KPMG, an Indian Partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Foreword
Double digit food inflation is an extremely topical concern that has plagued the Indian economy for the past three years showing no signs of abating. A high level of food inflation has a cascading impact on the overall health of the economy on account of the resulting interest rate regime that chokes the availability of capital to fund the economic growth engine. Reduction in food inflation has hence become a serious concern for the wider business community with implications beyond the food and agri-business sector. The reasons for the high levels of inflation are essentially structural in nature arising from supply constraints on account of the inefficiencies in production, processing, distribution and retail of fresh produce and food products. These