Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Fruit, veggies and fuel... no relief from the spiral by Sidhartha

Fruit, veggies and fuel... no relief from the spiral by Sidhartha

Share this article Share this article
published Published on Jan 28, 2011   modified Modified on Jan 28, 2011
The Food and Agriculture Organisation has raised the red flag over a potential spike in global prices of sugar and cereals, especially wheat. Although India might just get away thanks to a bumper output this year, it could get caught in the spiralling milk and edible oil prices. In any case, the government has virtually thrown its hands in the air on taming fruit and vegetable prices.

But it isn't just the monthly food bill that you need to worry about. Even your conveyance bill, which has seen six rounds of upward revision in seven months, could pose a problem as oil producers are predicting that crude oil prices will remain at three-digit levels.

"In our view, both products would likely see further upward adjustment in prices as global oil prices head toward $100/barrel. In particular, diesel prices remain well below cost recovery. While the government has resisted raising prices for that product for a number of months, we believe that a 4-5% price increase can be expected shortly," Deutsche Bank said in a research note. There was some comfort offered by Barclays Capital's Sudakshina Unnikrishnan and Kerri Maddock who said that globally governments would step in to protect consumers.

In India the government is discussing ways to soften the impact, which could come through tax cuts or subsidy to oil firms. But oil is not the only commodity of concern. With economic recovery, prices of most commodities, have risen because of growing demand from China and India. Commodities posted a strong performance in 2010, with copper, tin, gold and cotton at all-time highs and silver and sugar at 30-year highs. The trend is likely to continue.

With prices across the three segments —food, industrial goods and oil — that determine inflation rising, the year-end inflation targets are being revised. The government had earlier estimated end-March inflation at 6% but now RBI has raised it to 7%. Apart from higher prices, a consumer may have to deal with higher interest rates. This means higher fixed deposits returns and higher outgo on home loans.

The Times of India, 28 January, 2011, http://timesofindia.indiatimes.com/business/india-business/Fruit-veggies-and-fuel-no-relief-from-the-spiral/articleshow/7376108.cms


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close