Text size:

  • Small
  • Normal
  • Large

Early arrival of monsoons offers relief on rising prices

An early start to monsoon season leads to hopes of bumper crops for India's rice, sugar and wheat producers.

The start of the monsoon season is keenly awaited across India, with delays to the start of the rains having brought down governments in the past as farmers found themselves unable to make a living.

But the early arrival of the rains could be good news for an economy that has been hurt by surging food prices this year.

The south-west monsoon set in over Kerala on Sunday, "three days in advance to the normal onset on 1 June", the Indian Meteorological Department said.

Prices of Indian farm products have surged in the past year, leading to export bans on some items such as onions. India recorded a year-on-year increase of 8.55 per cent in food prices for last month, according to the commerce and industry ministry.

Food prices have soared in recent months, with the UN Food and Agriculture Organization's index of food prices reaching 236 points in February - their highest level since the index was created in 1990 - before settling slightly lower in April.

The potential for a larger harvest has also set speculation mounting that India's export restrictions, including long-standing bans on exports of non-basmati rice and wheat, could be eased.

"The government will probably wait to see how yields and production will turn out before they'll be able to export," said Erin FitzPatrick, a commodities analyst at Rabobank.

Rice, one of the world's major staple crops, has remained relatively stable in the face of large price increases for other commodities such as wheat, corn, coffee and tea.

ghunter@thenational.ae

Back to the top

More articles


Editor's Picks

 Cityscape Abu Dhabi 2014 will run until April 24, 2014. Fatima Al Marzooqi / The National.

In pictures: Cityscape Abu Dhabi 2014 opens
at Adnec

Key developments and master plans are being unveiled at this year’s property exhibition in the capital.

 Marina Square apartments Reem Island: Q1 2% rise. Studio - Dh65-68,000. 1BR - Dh75-95,000. 2BR - Dh110-145,000. 3BR - Dh170-190,000. Q1 2013-Q1 2014 no change. Sammy Dallal / The National

In pictures: Where Abu Dhabi rents have risen and fallen, Q1 2014

Find out how rental prices in the prime locations in Abu Dhabi have altered during the first three months of the year and the current rates you will pay according to data provided by Asteco.

 Designed by London-based Thomas Heatherwick, founder of Heatherwick studio, the park will feature an outdoor cinema, an organic garden, picnic areas and cafes and restaurants. Photo courtesy Salama bint Hamdan Al Nahyan Foundation

Futuristic Abu Dhabi park to be built in the desert shade

Spread over 125,000 square metres, Al Fayah Park, on Airport Road, will be covered by a sand-coloured canopy, 20 metres high, with the appearance of cracked desert land from above.

 Room with a view from one of the 21 duplex penthouses located in the Gate Towers sky-bridge. The sports courts and swimming pools can be seen below. Courtesy Alda

In pictures: Aldar’s Gate Towers Penthouse Collection on Reem Island

Aldar launched its Gate Towers Penthouse Collection at Cityscape Abu Dhabi. The launch features 21 penthouses spanning the skybridge, with each having a private indoor pool and incredible views.

 The Wind, Energy, Technology and Environment Exhibition takes place from April 14 to April 16. Above, the Dewa showroom during last year’s Wetex. Jaime Puebla / The National

April corporate and economic calendar for the UAE and overseas

From Cityscape to Wetex to stock-market holidays to nations reporting first-quarter GDP figures, here is our helpful calendar of April's business events in the UAE and internationally.

 Get the latest information on credit cards, bank accounts and loan products in the UAE. Mark Lennihan / AP Photo

Rates report: Latest on UAE loans, accounts and credit cards

Souqamal.com brings you the latest interest rates on banking products in the UAE.

Events

To add your event to The National listings, click here

Get the most from The National