Source: Business Standard
However, as the standing crop was hit by unseasonal heavy rain, especially in the states of Madhya Pradesh and Maharashtra, estimates are now expected to be less than last year’s. Prices had earlier soared in 2012 due to a poor monsoon, low stocks and a 30 per cent rise in minimum support price (MSP). This year, prices were expected to be stable. However, apart from the downward revision of the crop estimate, the MSP for 2013-14 had been fixed 13.6 per cent higher than last year’s and there have been strong pressures from the rupee that have kept a lid on cheap imports of soya oil. Thus, the all-India average wholesale price for a quintal of packed soya oil that had peaked to Rs.8,138.4 in September 2012 and moderated to Rs.7,800 in August 2013, has now crossed the Rs.8,000-mark again since December.
IPM data till week ending December 28. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from about 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.