Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

India Warned Of Stagflation Risk As Price Of Food Soars

Recommended Posts

http://www.telegraph.co.uk/finance/globalbusiness/7909557/India-warned-of-stagflation-risk-as-price-of-food-soars.html

A panel of Indian government advisers have called for immediate interest rate rises to prevent double-digit inflation spinning out of control. "Further tightening is required. Inflation is more than twice the comfort zone," the Economic Advisory Council said.

The central bank has been slow to act as India's inflation rises to 11pc, the highest in the G20 group of countries. The benchmark interest rate is heavily negative in real terms at just 5.5pc.

Food prices have been soaring despite the release of grain stocks. This has led to led to harsh criticism from the Bharatiya Janata nationalists and the Communists.

"The incumbent elite in Delhi may be sitting on a dormant volcano if popular protests over rising food and fuel prices erupt," said commentator Paranjoy Guha Thakurta.

Mr Cameron, accompanied by the chief executives of some of Britain's biggest companies, is attempting to forge new economic ties with a leader of the emerging BRIC states.

India has been growing at 8pc to 9pc a year over much of the past decade, benefiting from free-market reforms after shaking off the socialist shackles of the old Hindu Model from the Nehru era. Growth has been slower than in China but still enough to power an industrial revolution. However, the country is already running into infrastructure limits.

Surely if India increases interest rates it going to attract more capital in because of the returns as other nations have low interest rates ensuring inflation gets even higher?

Is India a likely candidate for hyperinflation? If the west was looking to destroy it's competitors what better way to do it. Although this could backfire badly.

Share this post


Link to post
Share on other sites
Guest Noodle

http://www.telegraph.co.uk/finance/globalbusiness/7909557/India-warned-of-stagflation-risk-as-price-of-food-soars.html

Surely if India increases interest rates it going to attract more capital in because of the returns as other nations have low interest rates ensuring inflation gets even higher?

Is India a likely candidate for hyperinflation? If the west was looking to destroy it's competitors what better way to do it. Although this could backfire badly.

Not sure of the situation in India but a little further East we are having a drought that has hit agriculture, particularly the staple of rice production very hard. Farmers here are on their 3rd rice planting, the previous two having failed and if this one doesn't see any rain thats pretty much it, no rice harvest for 2010.

One local has just had 65% of his rubber plantation fail due to lack of soil moisture. I guess others are having similar problems.

The Philippino Government predicted that they were in for the worst drought in 10 years.

Share this post


Link to post
Share on other sites

Not sure of the situation in India but a little further East we are having a drought that has hit agriculture, particularly the staple of rice production very hard. Farmers here are on their 3rd rice planting, the previous two having failed and if this one doesn't see any rain thats pretty much it, no rice harvest for 2010.

One local has just had 65% of his rubber plantation fail due to lack of soil moisture. I guess others are having similar problems.

The Philippino Government predicted that they were in for the worst drought in 10 years.

If only you hadn't retired! Can't take much to rustle up a little rain. :P

So the global price of rice is going to increase then?

Edited by interestrateripoff

Share this post


Link to post
Share on other sites

India doesn't need the West's help to destroy its economy. Rampant corruption and poor investment is simply headed on a collision course with over-population and food shortages.

India has been skating on thin ice for decades awaiting the first severe drought. Millions starve, take aim at the nouveau middle-class and the wealthy and soon you have civil war on your hands. The Marxists have been planning for this day.

Share this post


Link to post
Share on other sites
Guest Noodle

If only you hadn't retired! Can't take much to rustle up a little rain. :P

So the global price of rice is going to increase then?

For this/next year I reckon so. This area is the biggest rice exporter in the world, also chickens . . . bok bok!

Been getting dryer for the past 10 years, last year we didn't have much either, so the groundwater levels in the upper aquifers are low to zero, forcing abstraction from deeper confined aquifers which contain quite saline water . . . thus increasing the salt load in top soils and reducing crop yields further.

We also have the compounded effect of the Three Gorges Dam reducing Mekong river flow and discharge to our local rivers.

Share this post


Link to post
Share on other sites
Guest Noodle

It's pixxing down in the Punjab.

lahore-608.JPG?MOD=AJPERES

Flash flooding from torrential downpours is not quite the same, it doesn't recharge aquifers. It's the rainy seasons constant (remorseless) rainfall this area used to get that is needed.

Share this post


Link to post
Share on other sites

Flash flooding from torrential downpours is not quite the same, it doesn't recharge aquifers. It's the rainy seasons constant (remorseless) rainfall this area used to get that is needed.

OK but this year[so far]the water issue isn't reducing the Indian crop.

Key summer crop areas get good monsoon rain

Published on Wed, Jul 21, 2010 at 08:30 | Updated at Wed, Jul 21, 2010 at 09:27 | Source : Reuters

India's key crop areas, including cane and grain-growing states, have received good monsoon showers that have boosted output prospects despite low rains in the four-month season that began last month.

Government and weather officials said the country's crucial June-September monsoon rains have improved marginally, reducing the gap to 15% below normal so far in the season from 16% until Monday.

On Tuesday, showers in the biggest cane-producing state, Uttar Pradesh, were almost three times greater than normal, while daily rains in rice and cotton areas of Punjab and Haryana almost doubled.

Weather officials say good distribution of rainfall has helped sowing of summer crops like soybean, rice, cotton and corn.

"There will be substantial improvement in planting in the next week due to good rains in the last three-four days," Farm Minister Sharad Pawar told reporters.

He said planting of summer crops was higher than the previous year, indicating an increase in food output.

"There is no doubt about bumper production. It looks like a rosy picture," he said.

According to a latest government data, planting of cane, rice, cotton, lentils and oilseeds rose in the week to July 15, a result of evenly distributed rains.

Farm Secretary Prabeer Kumar Basu said the government was not worried about lower rainfall in the past 10 days, as crop sowing so far was better than last year.

India's monsoon rains were 16% below normal in June but heavy showers in early July reduced the seasonal deficit to 10%, which has since widened to 15% now.

The weather office last week said monsoon rains, which irrigate 60% of the country's farms, were 24% below normal in the week to July 14.

Cabinet Secretary K.M. Chandrasekhar, the country's top official, on Tuesday said he expected normal monsoon rains this year.

Last year, monsoon rains were the weakest since 1972, triggering high inflation and street protests besides creating a massive shortage of sugar in the world's top consumer of the sweetener.

Share this post


Link to post
Share on other sites
Guest Noodle

OK but this year[so far]the water issue isn't reducing the Indian crop.

Key summer crop areas get good monsoon rain

Published on Wed, Jul 21, 2010 at 08:30 | Updated at Wed, Jul 21, 2010 at 09:27 | Source : Reuters

India's key crop areas, including cane and grain-growing states, have received good monsoon showers that have boosted output prospects despite low rains in the four-month season that began last month.

Government and weather officials said the country's crucial June-September monsoon rains have improved marginally, reducing the gap to 15% below normal so far in the season from 16% until Monday.

On Tuesday, showers in the biggest cane-producing state, Uttar Pradesh, were almost three times greater than normal, while daily rains in rice and cotton areas of Punjab and Haryana almost doubled.

Weather officials say good distribution of rainfall has helped sowing of summer crops like soybean, rice, cotton and corn.

"There will be substantial improvement in planting in the next week due to good rains in the last three-four days," Farm Minister Sharad Pawar told reporters.

He said planting of summer crops was higher than the previous year, indicating an increase in food output.

"There is no doubt about bumper production. It looks like a rosy picture," he said.

According to a latest government data, planting of cane, rice, cotton, lentils and oilseeds rose in the week to July 15, a result of evenly distributed rains.

Farm Secretary Prabeer Kumar Basu said the government was not worried about lower rainfall in the past 10 days, as crop sowing so far was better than last year.

India's monsoon rains were 16% below normal in June but heavy showers in early July reduced the seasonal deficit to 10%, which has since widened to 15% now.

The weather office last week said monsoon rains, which irrigate 60% of the country's farms, were 24% below normal in the week to July 14.

Cabinet Secretary K.M. Chandrasekhar, the country's top official, on Tuesday said he expected normal monsoon rains this year.

Last year, monsoon rains were the weakest since 1972, triggering high inflation and street protests besides creating a massive shortage of sugar in the world's top consumer of the sweetener.

Good info. So the weather we are having hasn't gone to India. It's as bad as it's ever been here at the moment.

Share this post


Link to post
Share on other sites
Guest Noodle

Okay, any chance we can pin this thread? Because since it was started it's been pissing down here.

All good. :)

Share this post


Link to post
Share on other sites

Not sure of the situation in India but a little further East we are having a drought that has hit agriculture, particularly the staple of rice production very hard. Farmers here are on their 3rd rice planting, the previous two having failed and if this one doesn't see any rain thats pretty much it, no rice harvest for 2010.

One local has just had 65% of his rubber plantation fail due to lack of soil moisture. I guess others are having similar problems.

The Philippino Government predicted that they were in for the worst drought in 10 years.

Trailer loads of wheat on the roads now and it's only July! Don't know how good the crop is but never mind, these cereals are only there to stop people from building houses on the land!

Share this post


Link to post
Share on other sites
Guest Noodle

Trailer loads of wheat on the roads now and it's only July! Don't know how good the crop is but never mind, these cereals are only there to stop people from building houses on the land!

Farmers here said today it's the worst in living memory. We still get rain, a bit, but it should be lashing down most of the day, everyday.

Share this post


Link to post
Share on other sites

Farmers here said today it's the worst in living memory. We still get rain, a bit, but it should be lashing down most of the day, everyday.

Don't mention global warming!

Or the fact that much of the world has been in drought for the last decade, including the US and Lake Mead, that nice big body of water right behind the Hoover Dam is emptying so fast that they won't be able to generate electricity or provide water for crops in 5-10 years if it doesn't ease off soon.

Share this post


Link to post
Share on other sites
Guest Noodle

Don't mention global warming!

Or the fact that much of the world has been in drought for the last decade, including the US and Lake Mead, that nice big body of water right behind the Hoover Dam is emptying so fast that they won't be able to generate electricity or provide water for crops in 5-10 years if it doesn't ease off soon.

Sun spots?

Seen the Lake Mead levels. I was there 24 years ago, impressive that thing.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.