In a study done by ICRIER, it was shown that domestic prices of the 15 commodities over the 10-years (2004-05 to 2013-14) were on average 72 percent of the time below the export parity prices, 11 percent of the time above the import parity prices, and 17 percent of the time between export parity and import parity prices. In commodities like rice, groundnut, cotton, but also meat, onion, banana, and potato, Indian prices were 90 to 100 percent of the time below their corresponding export parity prices. For sugar and skimmed milk powder (SMP), domestic prices were above import parity prices in most of the years. India's soybean, maize, and wheat prices were largely in the non-tradable band. However, fluctuating global prices saw domestic prices of soybean, wheat, and maize appear sometimes larger than its import party prices and sometimes lower than its export reference prices.

How do you explain the above phenomenon using the concepts learnt in Micro economics? What solutions would you offer to tackle the problems of price fluctuation for the farmer and food inflation for the consumer?