Source: Business Standard

 

From Rs.1,781.04 a quintal in August 2011, the all-India average wholesale price became Rs.2,276.08 a quintal in April. The average retail price stands at Rs.25.22 a kg, compared with Rs.19.96 a kg two years ago. The 2011-12 crop was a record 105.31 million tonnes and last year, despite a deficient monsoon, total output is estimated to be just three per cent lower than that record. The MSP of rice has been raised every year to encourage production and with no liquidation of excess stocks, there are huge stocks of paddy with the FCI — on April 1, the total central pool stock stood at 35.468 million tonnes, against the buffer norm of 12.2 million tonnes. With rice being essentially a kharif crop, much will again depend on the monsoon this year and the sowing for the next crop is still a couple of months away. For now, with strong domestic and export demand, there is no let-up in sight for rice prices.

IPM data till week ending April 20. The Indicus Price Monitor, a product of Indicus Analytics Pvt Ltd, tracks realtime wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding WPI. However, broad trends are in sync with each other.