What are the consequences of deficient rainfall on pulses prices

The deficient rainfall has affected sowing, leading to concerns about a possible spiral in pulses prices.
The consequences of deficient rainfall on pulses prices can be significant, leading to various impacts on the market. Here are the point-wise consequences:
  • Drought-like conditions resulting from deficient rainfall reduce water availability, affecting crop growth and sowing of pulses.
  • Lower sowing leads to a decrease in overall pulse production, causing a drop in supply in the market.
  • With reduced supply, the demand-supply balance is disrupted, leading to an increase in pulse prices.
  • The rise in pulses prices can result in increased food inflation, making it more expensive for consumers to purchase essential food items.
  • As pulses are an important source of protein for many people, price hikes can lead to nutritional deficiencies, especially for vulnerable populations.
  • Inadequate rainfall and subsequent price rises can impact the income and livelihoods of farmers who depend on pulses as their primary crop.
  • Higher prices may also lead to increased imports, further impacting the economy and trade balance.
  • In extreme cases, deficient rainfall and subsequent rise in pulses prices can contribute to social unrest and political issues.
These consequences highlight the need for proper water management, agricultural strategies, and market interventions to mitigate the impact of deficient rainfall on pulses prices.
Answered a year ago
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