RIYADH: The UAE has pledged $2 billion to help develop a series of “food parks” in India to tackle food insecurity in South Asia and the Middle East, the UAE, India, the US and Israel said in a joint statement on Thursday.
The idea is to bring farmers, processors and retailers together in one place using the latest climate technology to minimize waste, conserve water and maximize crop yields.
The four countries would also advance renewable energy projects in India, they said in a statement.
“US and Israeli private sectors will be invited to lend their expertise and offer innovative solutions that contribute to the overall sustainability of the project,” the statement said.
India’s June WPI inflation stays above 15 percent
India’s annual wholesale price-based inflation kept above 15 percent in June, government data showed on Thursday, but the slight easing from the prior month’s three-decade high of 15.88 percent strengthens prospects for more rate hikes next month by the central bank.
Economists say inflation, driven by higher global crude oil and domestic prices, has shown little sign of cooling, despite a rise of 90 basis points in the benchmark rate of the Reserve Bank of India over the last two months and export curbs.
Wholesale prices, akin to producer prices, eased slightly to 15.18 percent, but stayed in double digits for a 15th straight month, the data showed.
A depreciation of nearly 7 percent this year in the rupee currency against the dollar has pushed up prices of imported food and energy products for companies as well as consumers.
Aditi Nayar, chief economist at ICRA, the Indian arm of Moody’s rating agency, said WPI inflation could ease to 13 percent in July, reflecting correction in global commodity and fuel prices, which surged after Russia’s invasion of Ukraine in February.
“We foresee 60 basis points of rate hikes by the Monetary Policy Committee over the next two reviews,” she said, referring to the central bank’s rate-setting panel.
The repo rate could rise to 5.5 percent by September, followed by a pause to ascertain economic growth momentum, she added.
The high inflation was mainly fueled by rising prices of crude petroleum and natural gas, food items, basic metals and chemical products, the commerce ministry said in a statement.
(With input from Reuters)
