Source: Business Standard
In July last year, the all-India average wholesale price crossed Rs 2,000 a quintal and this month moved above Rs 2,400 a quintal. Stocks with the government are high.
On September 1, stocks were more than double the buffer norms. This year's harvest, which will start coming in from next month, is set to add to these stocks. Meanwhile, even with huge stocks, domestic retail prices have been above Rs 26 a kg for the past three months, compared to the Rs 23 a kg levels at the same period last year.
Pressures continue on prices, as the minimum support price has moved from Rs 1,000 a quintal for common paddy in 2010-11 to Rs 1,350 a quintal in 2013-14. Exports are expected to rise by 10 per cent this year and the high demand has led to expectations of moderation in prices, rather than any significant decline.
IPM data till week ending September 14. 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. Due to the differences in methodology, the actual levels of the IPM differ from the corresponding Wholesale Price Index (WPI). However, broad trends are in sync with each other.