Chinese Drought Has Affected 900,000 Hectares

Severe drought and scorching heat has damaged over a million hectares of farmland in China’s Henan and Inner Mongolia provinces, with no immediate relief in sight, state news agency Xinhua reported.

Henan in central China is experiencing its worst drought in 40 years with precipitation at less than half of normal levels, the agency said. Some 900,000 hectares of crops have been damaged, it said.

Henan is a big producer of food crops, including soybeans, barley and rice. In some regions of the province, governments have shut off water supply to businesses such as commercial swimming pools and bath houses, while water intensive industries have been asked to restrict usage, Xinhua said.

In Inner Mongolia, a drought ongoing since April has affected 150,000 hectares of farmland and 16.4 million hectares of pastures, while robbing 300,000 people of drinking water, said Xinhua.

The Inner Mongolia drought was estimated to have cost 229 million yuan ($37 million) so far.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza