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What happens to the supply of food when there is a disaster or... - Economics
What happens to the supply of food when there is a disaster or a calamity?
When there is a disaster or a calamity (like a drought, flood, or earthquake), the supply of food is affected in the following ways:
Decrease in Production: The total production of food grains decreases in the affected area, creating a shortage of food.
Rise in Prices: Due to the shortage, the prices of available food grains increase.
Loss of Purchasing Power: At high prices, many people, especially the poor, can no longer afford to buy food.
Food Insecurity: If the calamity occurs over a very wide area or persists for a long time, it may cause a situation of widespread food insecurity.
Famine: If the shortage is severe and continuous, it can lead to a famine. A famine is characterized by widespread deaths due to starvation and epidemics caused by forced use of contaminated water and decaying food.
Government Intervention: In such situations, the government uses the Buffer Stock to supply food to the affected areas at subsidized rates to prevent starvation.