26 October 2016
AsiaNews.it Twitter AsiaNews.it Facebook
Geographic areas

  • > Africa
  • > Central Asia
  • > Europe
  • > Middle East
  • > Nord America
  • > North Asia
  • > South Asia
  •    - Afghanistan
  •    - Bangladesh
  •    - Bhutan
  •    - India
  •    - Nepal
  •    - Pakistan
  •    - Sri Lanka
  • > South East Asia
  • > South West Asia
  • > Sud America
  • > East Asia

  • mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato

    » 07/16/2012, 00.00


    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

    The new bishop of Changzhi and the many voices on China-Vatican dialogue

    Bernardo Cervellera

    The ordination will take place on November 10 in the Cathedral. The bishop had been appointed by the Holy See at least two years ago. But he was waiting for the green light from Beijing. Similar situation in Chengdu. Fears for the presence of excommunicated bishops. Reconciliation between illegitimate and official bishops is not brought about by political gestures, but depends on personal and canonical procedures. A meeting between the Chinese delegation and the Vatican is not "imminent".


    Pope: the cruelty of those who kill children in Iraq “makes us weep”

    "Our hearts are shocked by the heinous acts of violence that have been committed for far too long against innocent citizens, be they Muslim, Christian or members of other ethnic groups and religions."  World Mission Day “is time of courage”.


    AsiaNews monthly magazine (in Italian) is free.


    News feed

    Canale RSScanale RSS 

    Add to Google


    IRAN 2016 Banner

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