Skip to comments.India and China Buying Farmland Means Commodities Set to Rise
Posted on 02/17/2012 5:03:31 PM PST by James C. Bennett
New York, NY (PRWEB): Danny Esposito, co-editor of financial web site and newsletter Penny Stock Detectives, believes Indias recent purchase of farmland in Africa and Chinas recent purchase of 1.4 million acres in Venezuela are just the beginning of a rise in commodities, as both countries secure agricultural commodities for the future.
According to Esposito, there are compelling entrenched trends in place that make owning agricultural commodities in 2012 essential to every portfolio:
1. Expanding middle class in emerging markets (China, India)
2. Growing worldwide population
3. Bizarre weather patterns
As the economies in Asia continue to develop, a middle class is quickly emerging. These wealthier people are changing their eating habits to match those of the West; demanding more agricultural commodities, noted Esposito.
Esposito notes that with over 1.3 billion people in China and over 1.2 billion in India, and farmland scarce, both countries are in a mad race to secure farmland, and theyll be buying in 2012. Esposito believes this will drive up agricultural commodity prices.
(Excerpt) Read more at chron.com ...
New Delhi: Indias grain production will reach an all-time high of 250.42 million tonne this crop year, according to official data released on Friday, which could assist the the governments effort to implement the food security law and keep open market supplies steady to curb inflation. The record production is driven by a bumper harvest of rice and wheat, which account for three-fourths of the total grain output. The farm ministry data are the latest statistics to bear out the economys resilience. While industrial output picked up in November, credit flows to the manufacturing industry too rose in the month by 1 percentage point, apart from a speeding up in the manufacturing and services sectors.
India, the second-largest grain grower, had set a production target of 245 million tonne for the year through June on expectations of a bigger rice harvest. The country produced 244.78 million tonne of grain in 2010-11.
The agriculture and allied sectors grew 3.9% in the first quarter of this fiscal, compared with a 7.7% expansion of the overall economy. Similarly, while the economy expanded 6.9% during the second quarter, the farm sector grew just 3.2%. Agriculture and allied sectors grew at 7% in the 2010-11 fiscal year after a drought had dragged down farm harvest in 2009-10.
Plentiful rains, stellar show by states, especially in eastern India, timely and adequate availability of fertiliser and high-yielding seeds and the governments intervention through various programmes have helped achieve record production, agriculture secretary PK Basu told FE.
"It's a huge comfort to the food department in view of the huge requirement of grains for the (proposed) Food Security Act. The agriculture sector growth will also get a boost in 2011-12 despite a high base," he added
“Chinas recent purchase of 1.4 million acres in Venezuela...”
I gotta believe that China is about to receive a lesson in the downside of socialism.
If things go sour,then it will be Venezuela that gets schooled.
Remove the Great UnNatural Acts, Wilderness Act, Endangered Species Act, Clean Water Act, Clean Air Act, ad nauseam. Then America can produce all the food needed.
We have done it before there were regulations.
We can do it again.
Shut down Dept of Inferior, especially Dept. of Ag.
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