Monsoon could raise Gulf food prices

Weather conditions in India may cause food inflation Discuss this article

Weak monsoon rains in India may spark food inflation in the Gulf region over the coming months as tighter supplies pressure prices of basic commodities, traders said on this week.

Monsoon rains, vital for farm output gains after last year's drought, were 24 percent below normal in the past week and unlikely to rebound in the week ahead, the weather office said last week, raising fears of crop loss.

Countries in the Gulf region import most of their food supplies, as farming is a challenge due to extreme heat, limited water supplies and high soil salinity.

Ashutosh Sharma, executive director, Duli Sons, a New Delhi based rice trading firm, said: "At this point there have been a few corrections in the market as there is speculation that crops like basmati rice will drop by 15 percent and this will mean that the bill for importing countries will rise."

Monsoon rainfall was 16 percent below normal in June but heavy showers in early July reduced the deficit to 10 percent. After a dry spell in the past week total rainfall between June 1 and July 16 is 15 percent below normal.

Other crops that traders expect to be affected include maize, oilseeds and soya beans.

Read the full version of this story on arabianbusiness.com.

By Arabian Business
Time Out Doha,

Add your review/feedback

Subscribe to weekender newsletter

Submit

The Knowledge

Red Bull Jet Ski Duel
Mar 29

Fri March 30

Streep and Clooney head Oscar bids
Jan 25

Academy Award nominations hold few surprises

Tourism growth for Middle East
Jan 12

Package deals and discount rates contribute to increase in tourism sector

Newsletters

Sign up now

Time Out Dubai

Tourist or expat: can you guess?
Are these party people Dubai residents or are they just visiting?

Time Out
Abu Dhabi

Best pools in Abu Dhabi
Cool off at some of the greatest swimming pools in Abu Dhabi

Time Out
Bahrain

Get fit in Bahrain
From Brazillian Pump to Navy Seal fitness in Bahrain

Most viewed news