15 December 2017
AsiaNews.it Twitter AsiaNews.it Facebook
Geographic areas




  • > Africa
  • > Central Asia
  • > Europe
  • > Middle East
  • > Nord America
  • > North Asia
  • > South Asia
  • > South East Asia
  • > South West Asia
  • > Sud America
  • > East Asia


  • » 07/16/2012, 00.00

    INDIA

    Inflation drops but late monsoons threaten India's food sector



    In June, inflation stood at 7.25 per cent against 7.55 in May. Unsatisfied, India's central bank cannot anticipate whether interest rates will be cut as the government would like to see to boost the economy. Food sector faces crisis as late monsoons threaten harvest, higher prices.

    Mumbai (AsiaNews/Agencies) - India's headline inflation fell to 7.25 per cent in June, the lowest in five months. However, the Reserve (Central) Bank of India (RBI) is not satisfied because food inflation continued to fuel the headline number. For this reason, it is likely to keep interest rates unchanged. A weaker-than-normal monsoon is also raising concerns about a possible harvest shortfall that could contribute to the continuing rise in food prices.

    In May, inflation reached 7.55 per cent against 7.5 in April (revised from 7.23). At 7.69 per cent, March recorded the worst level. In January and February, it was 6.55 and 7.36 respectively. However, food inflation rose at a faster rate, 10.81 per cent in June, against 10.74 in May.

    Only at the end of July will the RBI know whether to cut interest rates and meet the government's request. In April, the RBI had already cut its key interest rate by 50 basis points, or 0.5 per cent, more than the widely-expected 25 bps.

    At present, predicting what the RBI might is impossible. Back in April, the central bank had added a number of caveats for future cuts, saying they would rely entirely on what the inflation rate would be.

    Unusual weather conditions are not helping the economy. Late monsoon rains, which usually come in June, could damage grain and cereal crops.

    Although India has a significant stockpile of food grains and cereals, it is hobbled by a weak storage and distribution system that often causes grains to rot instead of reaching the intended recipients. This means that storage costs tend to be high.

     

    e-mail this to a friend Printable version










    See also

    11/11/2010 INDIA
    People dying of hunger in India, but millions of bags of grains rot outside
    The archbishop of Bhopal slams the waste of surplus food due to poor storage management. More than 90 per cent of reserves set aside in the last few months can now only be used as fertiliser.

    01/10/2015 INDIA
    Indian Jesuit warns that people are starving as governments do nothing
    Fr Jyothi SJ is the convener of the Right to Food and Work network in West Bengal, an organisation of NGOs that launched an awareness campaign last Saturday to get the State government to activate the existing food security legislation for the State’s poor. “We want the government to wake up” and realise food shortages “will inevitably turn into famine” in the coming months. South Asia is home to half of the world’s undernourished, but one would not know it from Indian media.

    01/09/2009 CHINA
    China grain harvest is at risk from worst drought in recent years
    According to official figures of 12.73 million hectares of crops is parched. But unofficial sources describe a far worse situation worse. Major grain producing regions are hardest hit. The government fears social protests by poor farmers who risk losing everything.

    04/08/2016 15:48:00 INDIA
    Caritas India, aid for flood victims in Bihar and Assam

    More than 150 dead and over 2 million displaced. The monsoon rains continue to fall. Caritas has activated emergency operations immediately, but roads and bridges are flooded and remote villages are inaccessible.



    01/06/2015 INDIA
    After claiming 1,700 victims deadly heat wave ends in India
    Pre-monsoon rains are expected by the end of this week. Varanasi Priest speaks of "human tragedy", which mainly hit the poorest in the country. Because of the high temperatures, many are too weak to work and also risk of starvation.



    Editor's choices

    MIDDLE EAST – UNITED STATES
    Mideast Christians against Trump over Jerusalem capital, a decision that destroys hope for peace



    The Chaldean patriarchate criticises a choice that complicates the situation and fuels conflicts and wars. Card al-Rahi calls the decision “destructive” and a violation of international resolutions. Coptic pope Tawadros II cancels a meeting with US Vice President Pence. Somewhat resigned, Palestinians continue their protest. For Israeli peace group, the US has abdicated its role of mediator in the region.


    CHINA
    Xi Jinping’s false promises and the expulsion of the “low-end population” from Beijing

    Willy Wo-Lap Lam

    Tens of thousands of migrants and their families have been expelled and sent away from the capital. Yet, at the recent Party Congress, President Xi had promised to provide support and help against poverty. There is no reward nor legal or charity for displaced persons. The country’s "social Darwinism" condemns the rural people to marginalisation and allows urban classes to enjoy privileges and advantages. Courtesy of the Jamestown Foundation.


    AsiaNews IS ALSO A MONTHLY!

    AsiaNews monthly magazine (in Italian) is free.
     

    SUBSCRIBE NOW

    News feed

    Canale RSScanale RSS 

    Add to Google









     

    IRAN 2016 Banner

    2003 © All rights reserved - AsiaNews C.F. e P.Iva: 00889190153 - GLACOM®