As Food Prices Slump, Pressure Grows For More Interest Rate Cuts - Commodity Market Tips

A nearly 60 percent drop in prices of a popular type of lentil is hurting Indian farmer, but it is doing wonders for the country's inflation - and piling pressure on a stubborn central bank to cut interest rates more aggressively. Standing next to sacks of "pigeon peas" in Latur, an agricultural hub about eight hours from Mumbai by train, cuts a narrow slit in one and scoops out a handful of the red-coloured lentils. He harvested them in February but delayed selling them because prices were too low.

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