Positive vital statistics last week created an atmosphere of exuberance and hope for both rural and urban economies. Latest data showed a 2% positive growth in industrial activities and a drop in retail inflation. Sensex also crossed 25K in just three trading sessions last week in anticipation of good days ahead. All these developments have one common trigger; India will get a good monsoon after two years. According to the Indian Meteorological Department (IMD), the country is expected to get above normal monsoon. What will be its impact? This is an alarm bell for such unscrupulous traders who are hoarding food grains to jack up rates for profiteering. After good monsoon food prices will fall. Fearing this, hoarders will be forced to bring out grains from their godowns. Food prices of most of the edible items, barring import dependent pulses, are expected to soften soon.
(English version of ArthBodh column published in Amar Ujala, Apr 18, 2016 http://epaper.amarujala.com/dl/20160418/11.html?format=img )