Amid concerns about below-normal monsoon rains, retail prices of major agricultural commodities like rice, wheat, pulses, sugar, milk and vegetables remain stable, according to the Price Monitoring Cell of the Department of Consumer Affairs.
However, prices of edible oil variants have spiked due to an increase in global cooking oil prices. Rise in retail prices of some vegetables such as tomatoes and brinjal is attributed to summer season impacting the output.
Stating that price trends across cereals, milk, pulses and sugar continue to be stable, the department has stated that among the vegetables, potato and onion prices are range-bound, helping maintain overall stability in the food basket. The department collects daily prices of 40 food commodities from 578 centres across the country.
Despite the apprehension that the kharif crop may be impacted by below normal monsoon rains, average rice prices have seen a moderate increase of Rs 42.93/kg on Saturday, an increase of just 1% on year. Average retail prices of wheat was Rs 30.94/kg, a marginal decline of 1% on year
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Decade-High Cereal Stocks
The government’s surplus rice and wheat stocks are likely to offer a cushion against any possible shortfall in the production of these key food grains due to ‘below normal’ rains in the season.Sources said that current central pool rice stocks over 40 million tonnes (MT) are at a decade high and against a buffer of 13.54 MT for July. On June 4, wheat stock was 51.24 MT, highest since June 2021 and the stocks were against the buffer of 27.58 MT for July 1.
Price of gram and tur dal, which constitute about 65% of the country’s pulses consumption, has declined marginally on year because of robust output last year and record buffer built up through procurement and imports. India, which imports about 15%-20% of its pulses consumption from Africa, Myanmar, Brazil, Canada, Russia and Australia, has not been impacted due to the West Asia crisis.
The government’s buffer of over 4.3 MT of pulses, a record in the last three years, is likely to be used for offloading the market, if prices start rising in coming months.
Global Headwinds
The retail prices of mustard and soybean oils on Saturday rose by 12% and 10% to Rs 191/litre and Rs 161/litre respectively compared to prices prevailing a year ago. While edible oil prices of all variants have increased due to higher global prices, imports continue from Indonesia and Malaysia (palm oil), Russia and Ukraine (sunflower oil), and Argentina and Brazil (soybean oil) which are largely not impacted by West Asia. India imports about 57% of its edible oils – palm, soybean and sunflower – consumption annually.
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Currently, retail tomato prices were Rs 37,69/kg, an increase of 35% on year as summer season has impacted output. Potato and onion retail prices have decline 14% and 0.1% on year to Rs 21.49/kg and Rs 26.28/kg respectively because of bumper production and adequate rabi crops stocks which according to traders would meet the demand till September and October before early Kharif harvest starts arriving in the market.
“There are ample stock of rabi harvested onion which is expected to meet demand till September and lack of exports to Gulf countries due west Asia crisis has also improved domestic supplies,” Jaydutt Holkar, director, agricultural produce market committee (APMC), Lasalgaon, Nashik, the hub of country’s wholesale onion trade, told FE.
Retail prices of sugar have gone up 2.2% to Rs 46.92/kg because of higher production, the government recently put a ban on sugar exports to improve domestic supplies. The egg prices have gone up marginally on year to Rs 79.44 a dozen.
The retail food inflation remained in positive territory for four consecutive months in April, with a year-on-year rise of 4.2. The food inflation is likely to increase in coming months because of base effect likelihood of prices rising compared to last year by October.
TOPICSFood & BeveragesThis article was first uploaded on June seven, twenty twenty-six, at thirty-three minutes past six in the evening. © The Indian Express (P) Ltd