Relevance: Mains: G.S paper III: Economy
Context:
- According to a new report by Nomura Global Market Research, India is ranked 44 out of 110 countries in Nomura’s Food Vulnerability Index (NFVI).
News in detail
- Nomura’s Food Vulnerability Index (NFVI) ranks countries on the basis of their exposure to large swings in food prices.
- NFVI has three components: (1) country’s GDP per person, (2) the share of food in household consumption and (3) the net food imports. Typically, lower per capita GDP, higher share of food in household consumption and high net food imports would make a country more vulnerable to spikes in food prices.
- The 50 countries most vulnerable to food price surges in the coming months largely belong to the Emerging Market group. The top 50 together account for almost 60 per cent of the global population.
- India has been ranked 44 out of 110 countries; a higher rank is worse.
- At 4.6%, India’s retail inflation for October touched a 16-month high because of the jump in food prices. Food inflation grew by almost 8% – almost double the rate of overall retail inflation. Key items that contributed to this rise were pulses (inflation rate 12%) and vegetables (inflation rate 26%) and fish and meat (inflation rate 10%).
- Nomura is an Asia-headquartered financial services group with an integrated global network spanning over 30 countries.