Source: Business Standard
Mandi prices tracked through the Indicus Price Monitor show a more than 30% year-on-year (yoy) rise in November. Wholesale price index (WPI) also reflects this steep hike in inflation over the year.
Over the last five months, the price of open market sales to millers has been raised five times, leading to soaring prices of wheat. A tight market globally has led to higher wheat prices abroad. Though there has been slightly delayed owing,the prospects are bright for another bumper crop this year. Given the surplus stock and high prices, the government had so far stayed the proposed 15% hike in minimum support price (MSP). Yet, with higher input costs, some raise in MSP is expected; a firm decision on this should be out soon. Despite favourable output, therefore, prices are unlikely to head sharply downward.
The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 62 agricultural products in more than 3,000 mandis. Due to differences in methodology, the actual levels of IPM differ from the corresponding WPI. However, broad trends are in sync.
Data as of December 1, 2012