Australians warned of drought price hikes - Reuters

[Eugene]

Source: Reuters

Australians warned of drought price hikes
Fri Apr 20, 2007 1:19AM EDT

By Rob Taylor

CANBERRA (Reuters) - Australians were warned on Friday
to expect sharp food price rises and the possible end of
some farming in the nation's food bowl as the government
braced to shut off water to drought-ravaged irrigators.

Prices for fresh produce, including citrus and stone fruits,
grapes and apples, could triple within weeks of a mid-May
water cut-off announced by Prime Minister John Howard,
farmers said.

-snip-

Treasurer Peter Costello, who hands down the nation's
budget on May 8, acknowledged Australia's economic
climate was becoming more difficult as the dry intensified
and demands for government aid to hard-pressed farmers
mounted.

"If there's no irrigation the price of all crops that normally
come out of the basin will go up and that will affect prices
(inflation), there's no doubt about it," Costello told
Australian Broadcasting Corp. radio.

Read more: http://www.reuters.com/article/environmentNews/idUSSYD29456820070420