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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 421.29

-0.5%

Jan 16 4:00 PM EST

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To: arun gera who wrote (65751)	9/2/2010 12:13:09 AM
From: elmatador	Read Replies (1) of 219525

Many farmers have begun switching over to cash crops like cotton, or horticulture (fruits and vegetable) which find a ready demand from retail chains and food processing industries. This can be seen in the Punjab and in agricultural states like Maharashtra, Madhya Pradesh and UP as well. Horticulture has become extremely attractive because many food processing companies and retail chains like Wal-Mart are willing to purchase the next crop in advance through some form of contract farming. dnaindia.com The above mean the market is teaching India a lesson. As income rises Indians buy more processed food. The market supply chain is a new one as entities such as Wal-Mart enter it. Someone must dust off the David Ricardo book and start reading it. For India specialization in IT means all the bright kids are studying to become IT professionals rather than agriculture and food engineers. In Brazil they are specializing in agribusiness. Thus India will sell IT services to US, to earn USD to buy food from Brazil. That because "thanks to urbanisation and industrial development (including the reckless creation of SEZs), the land under cultivation has been declining alarmingly."

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