The recent food price inflation leading to food insecurity has been one of the immediate and striking outcomes of the recent oil price spikes and the global financial meltdown. This has triggered a chain reaction leading to the diversion of arable land in the form of overseas land grabs, and agreements between commercial food and finance industry. For instance, corns and scare economic resources are being diverted to the production of green bio-fuels such as ethanol and bio-diesel.

The fourth consecutive visit of President Nursultan Nazarbayev culminated in his being the chief guest at India’s 60th Republic Day parade. This shows the increasing importance India attaches to its strategic ties with Kazakhstan, a fact that has also been acknowledged by President Nazarbayev. In fact, the custom of inviting a head of state, particularly on such an occasion, is an effort to showcase two facets of India. One, to provide a glimpse to the chief guest of vast opportunities that exists in Federal India.

The recent downslide in crude oil prices from a peak of US $147 a barrel to below $40 and speculated to fall further to $25 has evidently provided relief to oil importing countries, which have been triply inflicted by huge oil pool deficits, growing food prices and global economic downturn. But based on current oil market fundamentals and past experience, there is no reason not to believe that the current fall in oil prices is likely to be temporary. Sooner or later prices will rise and may even be higher than the recent peak because of two particular reasons.