Source: Business Standard
With a dip in production expected and continued exports, domestic prices rose from an all-India average retail price of Rs.12.25 a kg in June to a peak of Rs.25.55 in February this year. While this was the highest price in two years, it is, of course, considerably lower than the high of over Rs.40 seen in January 2011. Over the last two months, with arrivals coming in from other states, prices have stabilised, averaging Rs.19.27 in May. However, the spike caused inflation to cross 100 per cent in the first two months of this year. Even though the rate is declining since then, it is still high enough to cause stress in household budgets and the Wholesale Price Index (WPI). As the rabi crop harvests, set to be completed by this month-end, are sufficient for stocks, prices are expected to decline. Thereafter, the price trend for the rest of the year will take its cue from the monsoons.
Indicus Price Monitor (IPM) data till week ending May 11. The Indicus Price Monitor, a product of Indicus Analytics Pvt Ltd, 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 the IPM differ from the corresponding WPI. However, broad trends are in sync.