Households in India, other Asia-Pacific regions highly vulnerable to El Nino-driven price shocks: S&P
Asia-Pacific economies face rising prices and weather shocks from El Nino. Reduced rainfall and climate disruption will affect agricultural output and food inflation. Countries are strengthening food reserves and water management to mitigate these impacts. India holds significant food grain buffers to manage potential food shocks. Proactive policies will limit damage from the developing El Nino…
S&P Global Ratings has warned that households in India and other Asia-Pacific countries are highly vulnerable to price shocks caused by the El Nino weather phenomenon. The rating agency predicts an increase in costs due to weaker rainfall, climate disruption, reduced agricultural output, higher food inflation, and diminished hydropower generation.
While some economies have taken measures to mitigate these risks, including expanding food buffer stocks, improving import planning, and strengthening market management, the impact of El Nino is expected to be most severe in South and Southeast Asia. These regions are particularly affected by lower rainfall, which can lead to higher food prices and disruptions in water-intensive industries.
However, proactive policies such as shifting to water-efficient crops, maintaining higher grain reserves, and enhancing water management can help limit the damage caused by a severe El Nino event.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
