Friday, September 18, 2009
Its not Raining Here
Generally Rain will dampen the spirits of joy only when it rains at wrong time...but by this time of the year in the southern India it should rain
But that's not the case this year . As u can see from the pic already we are running a 40 % deficit rainfall on a average if this is going to continue for next couple of weeks.
Then i guess output of the kharif crop which is major crop in year is going to decrease drastically , which will lead to scarcity of rice .
now its mroe dangerous because the states which supplies rice to stock pile
are facing the drought situation.
If that is the case then it will lead to shorting in supply side..which will lead into high pirces in coming days.
That implies it will lead to higher inflation which i suspect will act as a barrier to the growth