{"id":251499,"date":"2023-07-10T20:46:03","date_gmt":"2023-07-10T15:16:03","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=251499"},"modified":"2023-08-31T13:59:38","modified_gmt":"2023-08-31T08:29:38","slug":"tomato-challenge-hoarding-is-not-as-bad-as-it-sounds","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/tomato-challenge-hoarding-is-not-as-bad-as-it-sounds\/","title":{"rendered":"Tomato challenge: Hoarding is not as bad as it sounds"},"content":{"rendered":"\n<p><strong>Source<\/strong>&#8211; The post is based on the article <strong>\u201c<\/strong><strong>Tomato challenge: Hoarding is not as bad as it sounds<\/strong><strong>\u201d <\/strong>published in the \u201c<strong>mint\u201d<\/strong> on <strong>10th<\/strong><strong> Ju<\/strong><strong>ly<\/strong><strong> 2023<\/strong>.<\/p>\n<p><strong>Syllabus: <\/strong>GS3- Economy \u2013 Pricing and inflation<\/p>\n<p><strong>Relevance:<\/strong> Issues related to inflation<\/p>\n<p><strong>News-<\/strong> The ministry of consumer affairs announced a \u2018<strong>Tomato Grand Challenge\u2019 <\/strong>with the objective to ensure the availability of tomatoes at fair prices.<\/p>\n<h2><strong>What is the popular perception about hoarding?<\/strong><\/h2>\n<p>There is perception is that <strong>holding back supply causes the price to<\/strong> rise. People form an opinion based on what is visible today and ignore what is likely to happen tomorrow.<\/p>\n<p>People cannot make much sense of <strong>year- on-year price changes.<\/strong> They tend to have a <strong>recency bias<\/strong>. People compare today\u2019s prices with those of goods when last purchased.<\/p>\n<h2><strong>What are impacts of high inflation on food items?<\/strong><\/h2>\n<p>Relatively low-income families face the brunt of it in terms of household expenditure when these prices shoot up, and without notice.<\/p>\n<p>In contrast, farmers face distress when prices collapse suddenly, resulting in severe losses.<\/p>\n<h2><strong>Why hoarding is essential for producers?<\/strong><\/h2>\n<p>Farmers have destroyed excess produce to <strong>avoid a price collapse<\/strong>. They should have an option to stock the extra produce.<\/p>\n<p>The demand for food products is relatively stable. Variations in supply cause dramatic changes in these prices. Hoarding tends to reduce price volatility.<\/p>\n<p>The release of hoarded produce also lowers tomorrow\u2019s prices when tomorrow comes. This is called \u2018<strong>invisible\u2019 trade-offs <\/strong>because what happens tomorrow cannot be seen today.<\/p>\n<h2><strong>What is the way forward?<\/strong><\/h2>\n<p>There is need to develop cold storage options for cultivators. These should be <strong>accessible at reasonable<\/strong> prices. Cultivators should be allowed to decide when to bring their supply to the market.<\/p>\n<p>There is ned for creative ideas for developing <strong>integrated supply chain<\/strong>. Innovative solutions to achieve low-cost cold storage of farm produce and develop an <strong>efficient food processing sector <\/strong>can be helpful.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source&#8211; The post is based on the article \u201cTomato challenge: Hoarding is not as bad as it sounds\u201d published in the \u201cmint\u201d on 10th July 2023. Syllabus: GS3- Economy \u2013 Pricing and inflation Relevance: Issues related to inflation News- The ministry of consumer affairs announced a \u2018Tomato Grand Challenge\u2019 with the objective to ensure the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/tomato-challenge-hoarding-is-not-as-bad-as-it-sounds\/\">Continue reading <span class=\"screen-reader-text\">Tomato challenge: Hoarding is not as bad as it sounds<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,11125],"class_list":["post-251499","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-mint","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/251499","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=251499"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/251499\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=251499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=251499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=251499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}