Agri-commodity prices surge

Barring rice and wheat, prices of almost all agricultural commodities and allied semi-processed food items have shot up over 20 per cent in the last one month on lower production estimates for the current kharif season and uncertainty over the ensuing rabi season.

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Kharif cereals, pulses and oilseeds contribute around 20 per cent to the total agricultural output, while the rabi crop accounts for another 20 per cent. The remaining 60 per cent comes from the allied sector comprising horticulture, livestock and fisheries.

Although Planning Commission Deputy Chairman Montek Singh Ahluwalia said in New Delhi today that food prices should moderate by the end of this year with the government’s pro-active approach, few are convinced. The country’s wholesale price index rose 1.51 per cent in the 12 months to October 17 but the food price index was up 12.85 per cent, latest data showed.
FOOD FOR THOUGHT
Retail price Rs / kg
Commodities Oct 4 Nov 4
Rice 33 34
Wheat 18 20
Flour 20 24
Sooji (semolina) 20 24
Maida (flour) 20 26
Sugar 32 38
Tur 90 110
Turmeric 120 160
Egg / dozen 30 38


Madan Sabanavis, chief economist & head-knowledge management at the National Commodity & Derivatives Exchange (NCDEX), the country’s largest agri-commodity futures trading platform, said given the fact that the consumption pattern varied from region to region, Indian consumers were unlikely to change their food habits.

"Tur cannot replace chana just because of additional availability, while wheat cannot replace rice for consumers in certain Indian regions. Therefore, despite the government’s efforts to compensate for the grain deficit of the kharif season, inflationary pressures cannot be ruled out,” he said.

shiv shanker shukla
pgdm-3rd sem