- March 2, 2022
- Posted by: Author
- Category: Blog
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Russia-Ukraine war is an “Economic catastrophe” when inflation is already in an alarming state
and I am sure that this will definitely hamper Economic Growth globally.
This will lead to rising in oil prices and it will be difficult for the poor to sustain.
Crude touched 130 USD per Barrel mark and it will mostly hit the European Union countries including India.
The rise in crude prices is not good for the Indian Economy as it will affect the Fiscal Deficit.
The war has led to supply disruptions and hence have hit the prices of wheat, soybean, Fertilizers globally.
Even the rise in prices of Metals like copper, steel, Aluminum is raising worries about Economic Recovery.
An increase in Global price has made Indian wheat Exports to be competitive and occupy the space left by Russia and Ukraine.
A couple of states in India used to deliver wheat at a rate of 2,400 per quintal which otherwise was 2100 per quintal 2 weeks back.
Hence I recommend some portion of the wheat can be exported after considering overall domestic availability and the existing stock as any deviation will put pressure on public stocks
Palm oil in Malaysia is at an all-time high.
Vegetable oils & oilseeds prices are increasing and this situation will benefit Mustar growers in Rajasthan & Uttar Pradesh.
Cotton: A rise in prices of crude oil will make the raw materials costlier for synthetic textile manufacturers and it increases the prices of cotton.
Kiran Reddy, MD, Ticker Qube