Dec 16, 2015 - Food regulator FSSAI proposes tougher regulations for food importers

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Sree Vijaykumar

From the Editor's Desk
Oil is at around $35 a barrel now, the lowest in more than 7 years. It is more of a supply issue than a demand problem. OPEC is in discord, unable to agree on reducing output. Saudi Arabia doesn't want to end up being the only country cutting output, thus benefiting the competition. Saudi also seems to be playing a dangerous game with Iran, where it wants to ensure Iran suffers economically, by keeping oil prices low. Iran is scheduled to add supply early next year, since sanctions have been lifted. Russia (non-OPEC) keeps adding supply, so does the US. Demand from China and Europe have also dropped due to slower economic growth. The countries being hit the hardest are smaller exporters like Nigeria and Venezuela. India is a beneficiary, as we import more than 70% of our energy needs. As of now, the government is using the bonanza in savings to fund the fiscal deficit, only passing on a small proportion of the cost cut to end consumers. It is also a good time for India to beef up its strategic reserves, an essential component of its energy security policy (India has less than a month of supply, the US has more than 90 days and China is somewhere in between) - Comment

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