The Global Food Crisis

Food Inflation is going beyoud the common man's reach. In India, the food inflation has been underestimated at 18.4%. 33 countries have been affected by this phenomenon.

Let us analyse what are the causative factors for Food Inflation.


The main causes are

Water Resources depletion
The rising prices of Crude
Climate Change affecting Agriculture leading to floods and draughts
Population growth outstripping food growth
Global Population Growth 4%
Global Food growth 1%
Japanese and Indians consuming more proteins
Middle class Indians and Chinese eating more


So the main causes are more or less man made. Unless we control the global population, control the prices of crude, emit less Green House Gases into the atmosphere, we are in for big trouble.

The 4.4% growth recorded by the farm sector is encouraging, but this tempo has to be maintained. India has to feed 1.17 billion people and the world 6.5 billion. There are not enough resources on this planet.

The Garland Canal Project

The Interlinking of Rivers Project, proposed under the NDA Government has not taken place. The result of this project will be that the income of the farmer will be tenfold - up from 50 dollars per acre to 500 dollars per acre. If done, it will be a mega civil engineering feat. This Project envisages linking all the rivers of India via a Garland Canal and blocking the water from flowing into the sea. There are many rivers which flow into the Arabian Sea and the Bay of Bengal. The water flowing into the Arabian Sea will be blocked and will be diverted to the North. The Garland Canal project can give almost 40 GW of electricity and the farmers will have adequate water. No more farmer suicides. The cost of the Project has been estimated at $ 122 billion. There is criticism by some, saying that India cannot afford such a project.

Since everything is interrelated, these factors will affect the stock market as well. We find that the market has fallen from the peak of 21.K !