Poor farm technology responsible for food inflation: report

Poor farm technology responsible for food inflation: report Poor farm technology and poor links between farmers and food processing industry is responsible for persistent food inflation in India, according to a fresh report by the CII and McKinsey & Co.

The report, published on Friday, revealed farmers, mainly producers of food products, are currently achieving less than 60 per cent of the full potential yield.

The report blamed use of poor farm technology along with farmers' week links between with food processing industry for the problem.

It also suggested that the asymmetry in the demand and supply could be corrected radically improving the production of some high value foods, such as potato, soya bean, banana, mango and poultry.

Adil Zainulbhai, chairman of McKinsey India, said, "It is now imperative that India upgrade its agricultural practices and techniques, as well as well as accelerate growth in allied business fields such as food processing, in order to support the country's consumption demand changes over the next 20 years."

Barnik Mitra, the report's lead author, stressed on the need to establish a farm-gate to market infrastructure authority to spur increase in required infrastructure, such as national cold chains. He added that it would require coordination between the centre and states.

The CII-McKinsey report also predicted that India would enjoy a growth of 131 per cent in its farm production from Rs 12.69 lakh crore in 2011 to Rs 29.28 lakh crore in 2030, provided new technology and required policy changes are implemented.