Source: Business Standard

 

The drought in 2009 saw prices moving up dramatically, with the average all-India wholesale price crossing Rs.7,000 a quintal in late 2009. With the increase in output over the next two years, prices moderated. The ministry of agriculture estimates production at 2.75 million tonnes in 2012-13, higher than the previous year by just 0.1 million tonnes. This is much below the demand and the firming of prices during the April-September 2012 period has moderated slightly. While the average wholesale price of arhar has moderated from Rs.6,612.85 in September, it is still high, averaging Rs.6,355.45 a quintal in April. Inflation is at 20 per cent levels and shows little signs of abating. The government has allowed duty free import for another year, to keep a cap on domestic prices. With the rupee depreciating since last year, imports are not coming in cheaper and prices are not expected to fall significantly this year.

IPM data till week ending April 13. The Indicus Price Monitor, a product of Indicus Analytics, tracks real time wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of IPM differ from WPI. However, broad trends are in sync.