Source: Business Standard
Early last month, the Gujarat Co-operative Marketing Federation Ltd resumed procurement after more than a decade. The market situation has changed considerably over the last year, when a 37% rise in the minimum support price (MSP) and output deficit had triggered a steep rise in prices from August 2012, peaking early this year. With export restrictions, prices eased from January, and favourable monsoon boosting prospects for the rabi season, prices have moderated significantly. The MSP for 2013-14 has been set only 8% higher than last year, giving some let-off from pricing pressures. With moderation in prices now, the all-India average wholesale price of packed groundnut oil, which had been rising since 2009 to peak at Rs.12,609.56 a quintal in February, has fallen to Rs.11,595.84 a quintal in November.
IPM data till week ending December 7. 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 differences in methodology, the IPM levels differ from the corresponding Wholesale Price Index (WPI). However, broad trends are in sync.