Super El Nino May Trigger Inflation Shock in India's Fodder Fields

Super El Nino May Trigger Inflation Shock in India's Fodder Fields

A super El Nino event may lead to an inflation shock in India's fodder fields, affecting the country's dairy sector. The sector is already fragile, and a drought or poor monsoon could exacerbate the situation. The dairy sector is a significant contributor to India's economy, and a shock to the sector could have far-reaching consequences. The country's policymakers are already focused on the potential impact of the El Nino event on food grain production and agricultural output. However, the potential impact on the dairy sector is a new concern. The sector's fragility is due to its dependence on animal feed, which is affected by weather conditions. A drought or poor monsoon could lead to a shortage of animal feed, affecting milk production and prices. The government has been working to improve the sector's resilience, but more needs to be done to mitigate the risks. The issue is likely to be a major point of discussion in the ongoing trade talks between the U.S. and India.