News:According to a report by Nomura Global Market Research, India is ranked 44 out of 110 countries in Nomura’s Food Vulnerability Index.
About Nomura’s Food Vulnerability Index:
- Nomura is a financial services group with an integrated global network spanning over 30 countries.It is headquartered in Japan.
- Nomura’s Food Vulnerability Index(NFVI) ranks countries on the basis of their exposure to large swings in food prices.
- NFVI has three components namely (a)country’s GDP per person (b)the share of food in household consumption and (c)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.
Key takeaways from the index:
- According to the report,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 percent of the global population reflecting the massive number of individuals and households that are vulnerable.
Index on India:
- India has been ranked 44 out of 110 countries.India was ranked higher due to rise in India’s retail inflation at 4.6% because of the jump in food prices.
- Under the retail inflation,food inflation grew by almost 8% which is almost double the rate of overall retail inflation.
- The key items that contributed to this rise were pulses (inflation rate 12%), vegetables (inflation rate 26%) and fish and meat (inflation rate of 10%).