victor_raja Posted June 27, 2013 Report Posted June 27, 2013 [quote name='brahmacharya' timestamp='1372345216' post='1303895823'] f) The government’s social sector policies may also add to a huge demand for dollars in the time to come. The procurement of wheat by the government this year has fallen by 33% to 25.08 million tonnes. This will not have any immediate impact given the huge amount of grain reserves that India currently has. But as and when right to food security becomes a legal right any fall in procurement will mean that the government will have to import food grains like wheat and rice, and this will again mean a demand for dollars. This is a little far fetched as of now, but is a likely possibility and hence cannot be ignored. These are fundamental issues which will continue to influence the dollar-rupee exchange rate in the days to come and do not have easy overnight kind of solutions. Of course, if the Ben Bernanke led Federal Reserve of United States, decides to go back to printing as many dollars as it is right now, then a lot of dollars could flow into India, looking for a higher return. But then, that is something not under the control of Indian government or its policy makers. [i]((Vivek Kaul is a writer. He tweets @kaul_vivek) [/i] [/quote] [img]http://www.desigifs.com/sites/default/files/2013/GSB3.gif?1370457845[/img]
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