Source: Business Standrad
For households, the average retail price is now Rs.26.16 a kg, compared with Rs.20.03 a kg two years ago. This rise is despite high domestic production — 2011-12 saw a record 105.31 million tonnes, and last year production was estimated at 104.22 million tonnes despite poor rainfall. The minimum support price (MSP) of rice has been increased every year to ensure more procurement and better prices to farmers.
This year, MSP was increased 4.8 per cent to Rs.1,310 a quintal. Monsoon so far has been more than normal, though the eastern parts of the country are still to catch up. Overall, there are expectations of a good crop this year and global stocks are expected to touch a 12-year high. But with significant demand, domestic price pressures are unlikely to ease substantially.
IPM data till week ending July 13. The Indicus Price Monitor (IPM), 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 Wholesale Price Index (WPI). However, broad trends are in sync.