Explained:Nomura’s Food Vulnerability Index(NFVI)

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News:According to a report by Nomura Global Market Research, India is ranked 44 out of 110 countries in Nomura’s Food Vulnerability Index.

Facts:

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%).