Oct 20, 2008

Economy boom for poor!

It is a kind of economic boom for poor. Few months back there was a global cause of worry over price rise in food. Food price also caused riots to break out in over dozen countries. But now price has fallen to half of the high seen in recent past. Price of major commodity has decreased. Crude price, which was an all time high till July ($ 147) and was working a crude enemy, is now $69 per barrel.

Price of key commodities like grains, crude oil, and metals are on free fall. According to latest data release by Food and Agriculture Organization (FAO) of United Nations.

Main reasons behind the decline are record harvests in most crops and economic slowdown. Due to economic slowdown, crude price has hit. World cereal output has touched a new high and it 5 percent more than last year.

Wheat production has increase by 11 percent and rice production has increased by 2 per cent over last year’s record.

Price list in comparison to recent high ($ per metric tones):
Wheat : $ 482 (march) and currently $ 272
Rice : $772 (May) and currently $ 412
Soyabean: $586 (July) and currently it is 371