Sunday, January 13, 2013

Stagnation in Cultivation


If you are not already worried about food inflation and India's food security, today's chart of the day might perhaps make you start doing that. As the chart highlights, India's area under cultivation has remained pretty stagnant over the past couple of decades. This, even as its population is still growing and people moving up the food chain. Of course, there is always the yield to fall back on, but there's a limit to which the yield can improve we believe. Not to forget that the increased yield will lead to more usage of fertilizers and other crop nutrients. This trend is in contrast to countries like Brazil and US which can have vast tracts of land that can be brought under cultivation.

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