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Unlike most other nations across the world, the weather gods have blessed India with a bumper crop across the length and breath of the country, so much so that proper storing and preservation of the same has become a major issue. This has happened at a time when the wheat and barley crop in Russia and Ukraine have failed, the US hard wheat belt has been plagued with unusually heavy rains and thunderstorms and Western Europe's bread basket of France has been threatened with near drought like heat wave. As a result of global shortages Africa , parts of the middle east and parts of Asia that traditionally imported its wheat from Russia is in deep distress.
Still Indian farmers are unhappy and prices have plummeted ,because the Government won't allow them to export, nor freely trade without restrictions within the country in view of antiquated laws on inter state grain movement. The Government is instead trying to channelize the excess wheat to overflowing silos and godowns and open air storage facilities risking monumental wastage which happens each year albeit on a lower scale. Its long term plan is to use this excess supply to "its food for all programme" ,which unfortunately is still not ready to take off as several bottle necks have still to be ironed out regarding the distribution and effectiveness of the scheme. So another year of wastage and under utilization appears round the corner.
The poor of the world meanwhile are undergoing a bigger crisis than the Indian farmer. A food crisis that UN says could further fuel severe food riots and global unrest across the world especially in the poor African and Asian nations, besides the already affected middle east. The usually dependable European crop this year spell in France making it the 5th major wheat producer affected by natural calamities. The Russian, Australian and the US yield has been already been affected by bad weather and the biggest sufferers have been the importers of the largest wheat the African nations Egypt,Algeria and Tunisia.
The commodities exchange traded funds ETF flush with money from the big banks and hedge funds have pushed up wheat prices by 90% and cereal prices by 75% as per a Guardian report. The US Federal Reserve QE2 have given the big banks enough money power to ensure that they can mop up all the available stocks being traded at the commodity exchanges and make super profits out of such a global food crisis. If the surplus nations like India do not step in to ease the supply problem immediately, and the commodity markets are allowed to ramp up prices with low interest artificially injected liquidity, the world could see famines and revolt and millions affected before this summer is out.
Unlike most other nations across the world, the weather gods have blessed India with a bumper crop across the length and breath of the country, so much so that proper storing and preservation of the same has become a major issue. This has happened at a time when the wheat and barley crop in Russia and Ukraine have failed, the US hard wheat belt has been plagued with unusually heavy rains and thunderstorms and Western Europe's bread basket of France has been threatened with near drought like heat wave. As a result of global shortages Africa , parts of the middle east and parts of Asia that traditionally imported its wheat from Russia is in deep distress.
Still Indian farmers are unhappy and prices have plummeted ,because the Government won't allow them to export, nor freely trade without restrictions within the country in view of antiquated laws on inter state grain movement. The Government is instead trying to channelize the excess wheat to overflowing silos and godowns and open air storage facilities risking monumental wastage which happens each year albeit on a lower scale. Its long term plan is to use this excess supply to "its food for all programme" ,which unfortunately is still not ready to take off as several bottle necks have still to be ironed out regarding the distribution and effectiveness of the scheme. So another year of wastage and under utilization appears round the corner.
The poor of the world meanwhile are undergoing a bigger crisis than the Indian farmer. A food crisis that UN says could further fuel severe food riots and global unrest across the world especially in the poor African and Asian nations, besides the already affected middle east. The usually dependable European crop this year spell in France making it the 5th major wheat producer affected by natural calamities. The Russian, Australian and the US yield has been already been affected by bad weather and the biggest sufferers have been the importers of the largest wheat the African nations Egypt,Algeria and Tunisia.
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