Source: Business Standard
The 1st Advance Estimates of production for the kharif crop for 2013-14 at 5.5 million tonnes is the second highest in a decade. While the sowing in the rabi season was lagging slightly behind last year's levels, overall crop is expected to be good. The rise in minimum support price (MSP) in 2013-14 was set just 8 per cent higher than the previous year’s, compared to a 37 per cent rise in 2012. With a bumper crop and low demand, groundnut prices have dropped below the MSP in some places. The all-India average wholesale price of packed groundnut oil has fallen from the peak of Rs.12,609 a quintal in February 2013 to Rs.11,176 this February Even as the low prices have now spurred demand from stockists, the fall in groundnut oil prices this year has led to demands from the agriculture ministry to the commerce ministry to lift the ban on bulk exports of groundnut, a ban that has been in place for five years now.
IPM data till week ending February 8. 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.