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Crisis Looms as Corporations Seize Control of Commodities
Commodity scarcity in India was recently reflected in the need to distribute fertilizer from the police station in Hingoli. Now police have to control the lines that form outside of dealer outlets, because the dealers won't open for business otherwise. Without this intervention there would be no fertilizer for the planting that must take place before the rain comes. In Akola and Nanded, police involvement is also needed. Agriculture officers have fled their work places to escape angry farmers. In Karnataka, a farmer was shot dead during protests, while farmers stormed meetings and set up road blocks in other districts.
Despite the success of the genetically engineered Bt cotton crops, the trend in India is now back to soybeans because they cost less to grow and need less fertilizer than cotton.
And it's not just fertilizer that is scarce. Seeds are also in short supply which is being blamed on agitation that has interfered with freight train traffic. However, the shortfall in seeds is 60 percent, a level more indicative of corporate intervention to drive up prices than the actions of powerless farmers.
As farmers fume, the Wall Street Journal heralds the whopping 42 percent jump in the fiscal third quarter profits of huge agriculture giant Archer-Daniels Midland. This increase includes a sevenfold rise in new income in units that store, transport and grade grains such as wheat, corn and soybeans.
The soaring profits of fertilizer maker Potash Corporation of Saskatchewan are reflected in the parabolic movement of its stock price from a yearly low of $70.35 to its current price of $238.22 per share. Shares of fertilizer and animal feed producer Mosaic Corp. have risen from a yearly low of $32.50 to a current price of $159.38.
Similar windfall profits are reported by GMO seed and herbicide king Monsanto whose last quarterly earnings surged by 45%.
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