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Flooding fuels price increases
China
Wednesday 22 June 2011
MD
Devastating floods in China: 432,000 hectares of crops destroyed, vegetable production is expected to fall 20% this year.
Flooding across eastern, southern and southwestern China is causing significant damage to vegetable crops, adding to upward pressure on food prices
Flooding caused by heavy rains affected several areas: Zhejiang, Jiangsu, Anhui, Jiangxi, Hubei, Hunan and Guangdong. About 5 million people displaced, the first estimates indicate that U.S. $ 5 billion in damage. The floods have destroyed 432,000 hectares of crops and will reduce crop production by about 20% this year.
The damage caused by floods were added to those of drought in other parts of China will continue to raise prices. For three years food prices have been soaring with the increase in May reaching 11.7%.
The prices of fruits and vegetables in Zhejiang province, affected by the floods, have increased by about 40%. At the moment the effect on prices is local, but could spread rapidly.
The damage caused by floods were added to those of drought in other parts of China will continue to raise prices. For three years food prices have been soaring with the increase in May reaching 11.7%.
The prices of fruits and vegetables in Zhejiang province, affected by the floods, have increased by about 40%. At the moment the effect on prices is local, but could spread rapidly.
source : wallstreetjournal, market watch, bbc
