7 July, 2015 AsiaNews.it Twitter AsiaNews.it Facebook            

Help AsiaNews | About us | P.I.M.E. | | RssNewsletter | Mobile






mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato
e-mail this to a friend printable version


» 07/16/2012
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
by Santosh Digal
09/01/2009 CHINA
China grain harvest is at risk from worst drought in recent years
06/01/2015 INDIA
After claiming 1,700 victims deadly heat wave ends in India
by Nirmala Carvalho
07/30/2005 INDIA
India floods leave at least 850 dead
09/28/2007 INDIA
Orissa: Catholics help population affected by monsoon rains
by Nirmala Carvalho

Editor's choices
IRAQ – EUROPE
For Baghdad archbishop, the persecution of Christians is the product of fundamentalism and international political calculations
by Jean Benjamin Sleiman*Some people carry out persecution; others, unseen, order it, guided by political projects that are not just the product of religious intolerance. In a speech the European Parliament, the Archbishop of Baghdad of the Latins, Mgr Sleiman, said that the violence against Christians reflects plans to break up Iraq and the Middle East. The violence must stop; Christians should become full citizens; the state should guarantee coexistence.
ISLAM - MIDDLE EAST
Al Azhar and Vatican against terrorism. The ambiguity of the international community
by Bernardo CervelleraThe influential Sunni university denounces " heinous" violence of the Islamic state and demands the world defeat this group “through every possible means". Vatican: terrorism is a threat to all humanity. France claims to fight terrorism, but then sells weapons, aircraft, helicopter gunships to Saudi Arabia, which supports Islamic fundamentalism. Kuwait tolerates Salafis who support the Nusra Front and the Islamic state. Turkey against the Kurds; the United States against Iran, Russia and China.
TUNISIA - ISLAM
Tunis, stop terrorism by closing fundamentalist mosquesPresident Essebsi believes unified and global strategy needed to counter terrorism. The attack in Sousse almost simultaneous with those in France, Kuwait, Somalia. Islamic State claims responsibility.

Dossier

Copyright © 2003 AsiaNews C.F. 00889190153 All rights reserved. Content on this site is made available for personal, non-commercial use only. You may not reproduce, republish, sell or otherwise distribute the content or any modified or altered versions of it without the express written permission of the editor. Photos on AsiaNews.it are largely taken from the internet and thus considered to be in the public domain. Anyone contrary to their publication need only contact the editorial office which will immediately proceed to remove the photos.