Drought affected India to import food.

(Aug.25, 2009): India will import food to make up for shortages caused by a drought, thought to be affecting 700 million people, said Finance Minister Pranab Mukherjee. He did not specify what would be imported and when, saying he wanted to avoid speculation on prices. The drought is affecting almost half of India's districts. Food prices have risen by 10%, after the poor monsoon rains affected sowing. Monsoon rains are critical to India's farmers. Mukherjee said any commodity that was in short supply would be imported to boost domestic stocks. He said details of the imports were not being revealed, though reports said lentils, edible oils and other staples might be among the foods to be brought in. The summer rains are crucial to crops such as rice, soybean, sugarcane and cotton.
Concern is also growing in India, that international prices of many items such as sugar are increasing in anticipation of its need to import. The farm minister, Sharad Pawar, said the government would take action to ensure prices remained stable. Up to 70% of Indians are dependent on farm incomes, and about 60% of India's farms depend on rains.