India has experienced persistent and high food inflation in the recent past. What could be the reasons? 1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30%. 2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change. 3. The food supply chain has structural constraints.

The correct answer is B because of the following reasons. Statement 1 is incorrect. While there has been some diversification toward commercial crops, the area under food grain cultivation has not decreased by 30 percent. Such a massive decline would have led to a severe national food crisis, which has not occurred. Agriculture data shows that the area under food grains has remained relatively stable or seen only marginal fluctuations. Statement 2 is correct. Rising incomes, particularly in rural areas through schemes like MGNREGA, have led to a shift in consumption patterns. People are moving away from cereals toward high value protein rich items like pulses, milk, eggs, meat, and vegetables. This demand side pressure contributes to inflation. Statement 3 is correct. The food supply chain in India suffers from structural bottlenecks such as inadequate cold storage, lack of modern warehousing, fragmented marketing through the APMC system, and too many intermediaries. these constraints lead to high wastage and increased costs, driving up food prices.