Friday, December 18, 2009

Food Alert...

Food prices rose almost 20% from last week 19.05%. Where as manufacturing price rose 4% over a week, showing sign of building economic recovery. The WPI (Wholesale Price index) inflation rose to 4.78% in November 2009 from, 1.34% in October 2009.
Food prices are jumping because of shortages after crops were hit by the weakest monsoon rains in 37 years & then flooding in parts of the country.
This lead market expectations the central bank would tighten policy as early as Jan 2010.
RBI (Reserve Bank of India) Governor D Subbarao has said that monetary policy was not the right tool to fix supply problems such as food shortages, but has also noted the risk that if soaring food prices were factored into expectations for other prices it would create inflation pressures through the economy. The central bank holds its next policy meeting in late January, but it can adjust monetory policy at any time.

This influences us to get attention of food product industry & the stocks covering this.


  1. The government is concerned about the increase in food prices and has taken several measures to moderate the rise in prices of essential ban on export of wheat and rice, zero import duties on essential food items like sugar, rice, wheat, pulses, edible oils and maize besides allowing public sector units to import pulses...Let see what more is there to get revealed fro government's pocket....

  2. I hope all this things benefit lay man.. not just traders. Also this wil aid grains bt how about green vegetables.. the prices rising sky high..the time might come people like u n me will it just roti..not the sabji...

  3. food price consumption is definitely a concern....the skyrocketing of food-inflation has pinched the common man's tiny pockets. Agri being the major industry in India, is adversely affecting the GDP growth rate.Govt's efforts though may help to some extent, its still going to leave a hole in the Country's pocket. also, there r constant news of raids on warehouses where tonnes of grains being stocked by few traders to create artificial shortages which is fuelling the already on fire food prices...hopefully if these r found & brought in mkts b4 they go waste, it may help reducing the food prices..but on a positive side...though it may sound being a bit stocks like their prices....r on fire & now look lucrative...