Essay on Rising Prices
Each and every country in the world is facing the problem of inflation or rising prices today. In developing countries like India, the problem is still more crucial. People work hard in order to satisfy their basic needs - food, shelter and clothing.
But due to ever increasing rise in prices majority of the population cannot make their ends meet. The reasons for price hike are many. The main reason being, huge difference between production and demand.
There has to be proper balance between the production and availability of commodity and demand. When this balance gets disturbed, inflation finds its way. Secondly, India is an agricultural country and it depends totally upon the climatic conditions.
If climate is not favourable, naturally there is a decrease in agricultural produce. Natural calamities like droughts, floods affect the agriculture sector to a great extent. Moreover, grains and other essential commodities are hoarded on a large scale by the rich merchants and shopkeepers. This results into artificial shortage of grains.
They take these grains to market only when there are price hikes. Massive rise in population is still another reason for price hike. More the population more is the demand for essential commodities. Petroleum products like petrol, diesel or kerosene have a strong grip on the international financial budget.
When their prices are increased it naturally affects the financial condition of a country. Inflation results into corruption, violence and causes overall disturbance in the country. If people cannot make their ends meet, how can they contribute to the progress of a nation? The problem is not easy to solve.
The Government has an administrative distribution system of essential goods. There are fair price shops for the people below poverty line families. But these offices, the working staff, and owners of the shops are engaged into corruption and so the system is not helpful for the poor strata. So the government needs to take strong action against these ill practices