Food inflation to soar

[vsncas]

Food inflation to soar as farmers shun pulses. Preference for cash crops results in a drop in acreage of cereals and pulses this kharif season.

In search of Money Plant, eyeing Moolah, farmers bet on cotton and sugar cane. Fall in pulses acreage as farmers shift to cotton and soyabean. There is a Jump in paddy sowing this year over the same period last year and also expansion in turmeric acreage thanks to bumper prices last year.

Indiranil Pan, Kotak Securities says that given the dyanamics between acreage and production and production and inflation, with food grain acreage still below last year, we see risks to the degree of moderation that markets have been expecting in December .....

Hope, the regulatory authorities will act with produent plan to tackle this issue.

V.Senthilnathan