Explanation Text of Social Phenomenon

Explanation Text of Social Phenomenon

How Rising Food Price Happen

Pict by : Beritasatu.com

               Food is anything that comes from biological sources, whether processed or not processed, which is intended as food or drink for human consumption. While the term price is used to give financial value to a product or service. In an area food prices are not always stable. There will be times when food prices soar. The increase in food prices occurred because it was influenced by higher demand than supply.

               This stems from the scarcity of raw materials. Raw material is a crucial thing that must be had to procesa a product. Indonesia has enough natural resource to produce food raw material. But, low quality of food raw material produced in country make producer choose food raw material imported by foreign. Food raw material imported by foreign has good quality. This makes producers dependent on foreigners.

                When, the raw material supplier countries are being affected so they are unable to supply raw materials to producers. That's when the scarcity of raw materials occurs so that the production process of an item is disrupted. Limited raw material make producers can't do the production process again. As a result the value of supply decreases while the value of market demand soars. That occurred because the availability of products on the market has been meager, while consumer demand continues without interruption.

                Besides that, the production process could run smoothly but the distribution process was disrupted. Process disrupted distribution can affect the value of supply and demand is not balanced. As a result, this economic agents choose a raising food prices to stem consumer demand too much. In addition, the increase in food prices can occur due to the high cost of raw materials because the scarcity of raw materials for the production process.

               Therefore, rising food price happen caused by an imbalance between supply and demand. The consumer demand so high and not accompanied by the availability of goods on the market, makes economic agents raise prices. The cunning people who hoard production also can worse condition. Bad effect is economy crysis until threat of inflation. That all can occurred because the rupiah exchange rate jumped so that it could affect the calculation of the value of state revenue.